The Impact of Non-oil Export on Domestic Investment in Nigeria

Joseph Omojolaibi, Ekundayo Mesagan and Adeyemi Olaifa

MPRA Paper from University Library of Munich, Germany

Abstract: The study explores the relationship between non-oil export and domestic investment in Nigeria. Relevant data were collected from the Central Bank of Nigeria statistical bulletin between 1980 and 2011. The error correction model was estimated in determining how non-oil export impacts domestic investment and the granger causality test was conducted to determine the causal relationship among the variables. The findings revealed that the impact of non-oil export on domestic investment was positive but insignificant. The insignificance is as a result of the mono-cultural nature of production skewed towards the oil sector, although the positive coefficient shows that a lot of prospects still exist in the sector. Also, the findings show that while domestic investment granger causes non-oil export, nonoil export did not granger cause domestic investment. Hence, the study the recommended that effort must be made at formulating explicit export promotion policies that will encourage the growth of the non-oil sector in order to make them more viable at generating export earnings for the country and also boost their contribution the level of domestic investments in the country.

Keywords: Non-oil Export; Domestic Investment; Export Promotion; Causality; Nigeria. (search for similar items in EconPapers)
JEL-codes: C32 C33 F43 (search for similar items in EconPapers)
Date: 2015-09-02
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in The Empirical Econometrics and Quantitative Economics Letters 3.4(2015): pp. 15-29

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70201

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