Uncertainties in Global Economic Policy and Nigerias Export Earnings

Balakeffi Ladi Raulatu (), Oboh Victor Ugbem (), Ujunwa Augustine () and Fwangkwal Mwanji Paul ()

International Journal of Business, Economics and Management, 2019, vol. 6, issue 1, 23-38

Abstract: This study examined the contemporaneous effect of global economic policy uncertainty on Nigeria’s export earnings, using Nigerian data that spans from 1997 to 2016. The theoretical framework relied on the contemporaneous theory of external vulnerability, which posits that macroeconomic shocks from dominant economies could be transferred to lesser dominant economies through international linkages of global economies and financial market. To achieve objective, this study employed the ARDL and GARCH estimation techniques, to estimate the effect of global economic policy uncertainty on Nigeria’s export earnings. The results revealed the adverse effect of global economic policy uncertainty on Nigeria’s export earnings, affirming the vulnerability of Nigeria’s export earnings to external shocks. The practical implication of the finding is that developing economies could insulate their domestic macroeconomic environment from external shocks by diversifying their economies. Importantly, Nigeria should increase diversification of her export base as a coping strategy for protecting against the contemporaneous effect of global economic uncertainties.

Keywords: Global economy; Policy uncertainty; Export earnings; ARDL; GARCH; Nigeria (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/62/article/view/1205/1695 (application/pdf)
https://archive.conscientiabeam.com/index.php/62/article/view/1205/5009 (text/html)

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:pkp:ijobem:v:6:y:2019:i:1:p:23-38:id:1205

Access Statistics for this article

More articles in International Journal of Business, Economics and Management from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().