Does Clove Export Cause Economic Growth in Nigeria?

Okezie A. Ihugba, Alexander A. Orji, Erasmus E. Duru and N. C. Ebomuche
Additional contact information
Okezie A. Ihugba: Alvan Ikoku Federal College of Education
Alexander A. Orji: Nnamdi Azikiwe University
Erasmus E. Duru: Federal University of Technology
N. C. Ebomuche: Alvan Ikoku Federal College of Education

Chapter Chapter 8 in Applied Economic Research and Trends, 2024, pp 113-141 from Springer

Abstract: Abstract Using annual data from 1970 to 2019, this study investigated the causal relationships between clove export and economic growth in Nigeria, using econometric techniques to empirically evaluate the hypotheses generated. In this regard, utilizing a systems simultaneous equation, a co-integration analysis was introduced to capture long- and short-run relationships among variables. Ex ante forecasting employing impulse response and variance decomposition simulations, as well as ex post forecasting to evaluate the period under study, were also used in this study. This study looked at causality relationships between series using the vector error correction model (VECM) and the Granger causality technique, which is used in F-/Wald test simulation to investigate short-run causation. Non-oil export trade has a positive and significant relationship with economic growth in its first and second lags, according to empirical findings, but oil exports have a positive and substantial effect on economic growth in its first, second, and third lags. Both oil and non-oil exports influence economic growth, according to the VECM–Granger causality results. A closer examination of the impulse response function reveals that non-oil exports will contribute to economic growth in both the short and long run. Meanwhile, the data point to oil export as an export that can stifle economic growth. Furthermore, data show that non-oil exports have always played a significant role in contributing to economic growth. This study advises that the money supply be expanded since it is beneficial to investors, based on the findings. When it rises, it lowers interest rates and stimulates more investment, resulting in economic growth.

Keywords: C10; O4; F1; O55 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-3-031-49105-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9783031491054

DOI: 10.1007/978-3-031-49105-4_8

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().