Impact of Non-Oil Export on Nigeria’s Economic Growth: A Disaggregated Approach

Isah Usman Abdullahi, Umar Farouq Muhammad and Umar Isah Yahaya

MPRA Paper from University Library of Munich, Germany

Abstract: This study used a disaggregated macroeconomic model and an Error Correction Mechanism (ECM) to analyze the effects of non-oil exports (NOE) on Nigeria's economic growth from 1980 to 2021. Before estimating the model, unit root and co-integration tests were conducted to determine the stationarity and long-run properties of the variables. The Augmented Dickey-Fuller (ADF) unit root test results indicated that all-time series were non-stationary at level but became stationary after first differencing. The Johansen co-integration test results revealed that the variables are co-integrated, suggesting a long-run equilibrium relationship among them. The ECM findings indicated that NOE components positively impacted Nigeria's economic growth in both the short and long run, although the impact was largely insignificant. Based on these results, it was recommended that Nigeria's export development strategy be refocused and reinforced to address supply capacity constraints in various NOE sectors. The argument is that the government can initially manage and develop these non-oil sectors and later transfer them to private enterprises.

Keywords: Economic; Growth:; Non-Oil; Export; (NOE):; Trade; Openness:; Exchange; Rate (search for similar items in EconPapers)
JEL-codes: G0 (search for similar items in EconPapers)
Date: 2024-05-10
New Economics Papers: this item is included in nep-int and nep-ipr
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/122084/1/MPRA_paper_122084.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:122084

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().