Factors of macroeconomic growth in Nigeria: wages demand, taxes, and entrepreneurship development

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This paper contributes to clarifying the scientific debate on the impact of entrepreneurship development and wages increases on Nigeria’s macroeconomic development. The main purpose of this research is to estimate the impacts, problems, and consequences between wages growth and the growth of a long-term relationship between wages and investment. The article deals with the current state of Nigeria’s macroeconomic indicators. The methodological tools for the research are the ARDL and DOLS methods, which were used to study the relationships between the macroeconomic indicators. The research period is 1987–2019. The research empirically confirms and theoretically proves that the country operates under unstable and uncertain conditions, so it is difficult to achieve macroeconomic stability. Also, the article presents the results of the analysis, which has shown a positive and statistically significant effect of raising the minimum wages on economic growth both in the long and short term. The study results can be useful for state authorities, private sector, as well as for the researchers.

Acknowledgements
This research was prepared as a part of the Scientific Project “Modeling the Transfer of Eco-Innovations in the Enterprise-Region-State System: Impact on Ukraine’s Economic Growth and Security” (No. 0119U100364), that is financed by the state budget of Ukraine.

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    • Table 1. DOLS test for cointegration relationship in the equation
    • Table 2. Estimated coefficients of the equation using DOLS approach-dependent variable
    • Table 3. ARDL bound test for cointegration relationship
    • Table 4. DOLS test for cointegration relationship
    • Table 5. Estimated long-run coefficients using the ARDL Approach-Dependent variable
    • Table 6. Error correction representation for the ARDL model
    • Table 7. Model diagnostics and stability tests
    • Conceptualization
      Fedir Zhuravka
    • Project administration
      Fedir Zhuravka
    • Supervision
      Fedir Zhuravka, Olena Shkarupa
    • Writing – review & editing
      Fedir Zhuravka
    • Formal Analysis
      Olena Shkarupa, John O. Aiyedogbon, Ivan Shkarupa
    • Methodology
      Olena Shkarupa, Ivan Shkarupa
    • Writing – original draft
      Olena Shkarupa, John O. Aiyedogbon, Olure-Bank Adeyinka
    • Resources
      John O. Aiyedogbon
    • Visualization
      John O. Aiyedogbon
    • Funding acquisition
      John O. Aiyedogbon, Olure-Bank Adeyinka
    • Investigation
      Olure-Bank Adeyinka
    • Validation
      Olure-Bank Adeyinka, Ivan Shkarupa
    • Software
      Ivan Shkarupa