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THE PRINCIPLES AND METHODOLOGY OF BALANCE OF PAYMENTS

ABSTRACT

In this study, a systematic and empirical investigation has been carried out to examine the principles and methodology of balance of payments with particular emphasis on the consistent deficit balances recorded in most segments of the balance of payments package since the 1960s. The summary of the objectives of this study was to determine the role played by trade factors, government attitude and private interest, both domestic and foreign, in

the continued adverse outcome of balance of payments packages. We found in the course of our investigations that the entire economic problems and, indeed, that of balance of payments, are not that adequate policies have not been

put in place to achieve better results but there is complete lack of sincerity to see these policies work. These policies are merely “photo-tricks” as those who make these policies themselves violate them. We corroborated our hypothesis by analyzing in-house data collected from creditable sources and tried to establish that oil prices greatly influence the outcome of balance of payments. Based on our findings we made recommendations that deliberate policies must

be put in place to bring sanity to the society. Also, funds should be provided for intensive economic activities. Activities in agriculture, the manufacturing sector as well as petroleum industry should be diversified.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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