This study investigates the impact of bank-specific variables and selected macroeconomic variables on the South African banking sector for the period 1994-2011 using the capital adequacy, asset quality, management, earnings, and liquidity (CAMEL) model of bank performance evaluation. The study employs data in annual frequency from South Africa’s four largest banks, namely, ABSA, First National Bank, Nedbank, and Standard Bank. These banks account for over 70% of South Africa’s banking assets. Using return on assets (ROA) and return on equity (ROE) as measures of bank performance, the study finds that all bank-specific variables are statistically significant determinants of bank performance. Specifically, the study shows that asset quality, management quality, and liquidity have a positive effect on both measures of bank performance, which is consistent with a priori theoretical expectations. Capital adequacy, however, exhibits a surprising significant negative relationship with ROA, while its relationship with ROE is significant and positive as expected. Except for interest rates (in the ROA model), unemployment rate (in the ROA model), and the rate of inflation (in the ROE model), the rest of the macroeconomic variables are statistically insignificant. The study reveals that bank performance is positively related to interest rates and negatively related to unemployment rates and interest rates.

The study investigates effect of non-oil export on the economic development of Nigeria. The mono economy nature of Nigeria and the need to diversify the economy form part of the motivation for the study. The study used per capita income as proxy for economic development and expressed it as a function of non-oil export volume, trade openness, exchange rate capital formation and inflation rate. The study applied ordinary least square estimating technique and the result show that non-oil export exhibits a significant positive relationship with per capita income. This indicates that if non oil export volume is increased it is going to lead to a significant improvement in the Nigerian level of economic development. However, other variables do not have individual significant impact of economic development but jointly they can significantly influence economic development. In addition, the result shows that the coefficient of trade openness is negative thus, indicating that Nigeria might not be benefiting enough by trading with outside countries. This shows that trading partners of Nigeria are gaining more from trade transactions than Nigeria. This calls for review of trade policy of Nigeria if the positive effect of non-oil export on Nigerian economic development is to be promoted.

The study investigated the nexus between globalization and economic development of Nigeria. The study employed both cointegration and causality test. The result shows that Foreign direct investment is a component of globalisation and important factor influencing the economic development of Nigeria. Trade openness shows a negative relationship. The causality test indicates that a unidirectional causality exist between economic development and globalisation that is causality flows from economic development to globalisation in other words, it is the level of economic development that determines how a country like Nigeria can benefit from globalisation. Again the study reveals that trade partner of Nigeria appears to be gaining more than the country especially the developed trade partners.