On oil export and economic growth in nigeria pdf free

However, agex and msex are the main determinants of economic growth in nigeria. An exploratory data analysis is employed using secondary data to examine the relationship between oil and gdp and the effect it has had on nigeria s growth since 1961. Introduction the association between exports and economic growth and how exports can effectively contribute to growth in developing countries has been at the centre of a longstanding debate among government planners, policymakers. The main objective of this study was to investigate the effect of non oil exports on economic growth in nigeria. The economy is experiencing a fall in exchange earning, a fall in gdp. According to adulagba 2011, the country exported 1. Views expressed in this paper are solely ours and do not represent or reflect those of usman danfodiyo university, sokoto and central bank of nigeria, where we work. Oil price volatility, fiscal policy and economic growth. The nigerian economy remains dependent on the small oil sector under 10 percent of gdp for the bulk of its fiscal revenues and foreign exchange earnings. The study found that a unidirectional causality exists from oil export to gdp which lends support to workability of export led growth theory in. Since the importance of foreign income cannot be overemphasized, this study therefore examines the performance of non oil exports over the years as well as the reason for that pattern and level of. The effect of non oil components export on the economic growth in nigeria continue to be debated and tested in order for turning around of the nations economic outlook for the future good, by strengthen non oil export growth and success and also promote a non oil export culture. A panel vector autoregressive technique was employed to examine the impact of oil price volatility on economic performance of five oil.

A new report from oxford university says that crude oil price volatility is undermining stable economic growth around the world. Contribution of non oil exports to economic growth in nigeria. Nigeria emerged from recession in 2017, but its non oil, nonagriculture sector continued to decline. Pdf contribution of non oil exports to economic growth.

The finding shows the existence of a positive relationship between gdp and non oil export, consumer price index and exchange rate. The main objective of this paper is to investigate empirically the association between exports and economic growth in the nigerian context. The study investigates the relationship between diversification of non oil export products and economic growth in nigeria from 1981 and 2014. Empirical analysis from the study suggested that oil export revenue had a positively significant effect on growth both in the shortterm and longterm in the country. Pdf impact of non oil export on economic growth in nigeria. Texas is on an export roll, recording a new record last year with houston leading the way and expecting mor. New report blames oil price volatility for lack of stable economic growth. The share of non oil export, oil export and total export to gdp 0 10 20 30 40 50 60 0 10 20 30 40 50 60 1970 1975 1980 1985.

Pdf contribution of non oil exports to economic growth in. These nations supply nearly 80% of the worlds oil exports. This study examines the role of non oil export on economic growth since deregulation between 1986 when deregulation took effect and 2012 which previous studies might have ignored. D, hcib department of accountingfinance, faculty of management and social sciences, godfrey okoye university, enugu abstract. The challenges of non oil export sector is not that it is being over shadowed by the oil export trade, but traceable to declining non oil export and loss of market share in the non oil trade globally is a clear evidence of how the non oil sector competitiveness of the nigerian economy has been consistently eroded over the last three decades. The impact of oil and nonoil exports on the economic. This empirical study examined oil revenue and economic growth in nigeria between 1981 to 2014. Exports, diversification, nigerian economy, crude oil, non oil commodities. The data for this study were analyzed using both descriptive. This paper extends the previous empirical studies on the issue. An empirical investigation of oil revenue and economic growth. Oct 19, 2020 the dilemma facing the non oil export sector is not only that it is being overshadowed by the oil export trade, but the declining non oil exports and loss of market share in the non oil trade. Pdf nonoil exports in the economic growth of nigeria.

This makes nigeria s balance of payments and government budgets vulnerable to volatilities in oil prices. Both oil and non oil exports have no significant impact on economic growth in nigeria. The effect of oil dependency on nigerias economic growth. Houston is leading the way and expecting more to come with the recent approval of a new liquefied natural gas lng export facility. This means it can be viewed across multiple devices, regardless of the underlying operating system. This is especially so when the value of exported goods of such an economy exceeds the value of. Oil contribution to economic growth is in its returns in excess of production costs in the nigeria economy from 1970 to 1999, oil. Consequently, various diagnostic tests such as unit roots, cointegration and pairwise granger causality tests were estimated. The policy concern over the years has therefore been to expand non oil export in a bid to diversify the nations export base adedipe, 2004. The impact of nonoil export on domestic investment in nigeria.

Budina, pang and wijnbergen 2007, however, point out that dds alone does not explain the slow growth of the nigerian economy, especially her non oil sector. The share of non oil export in the countrys total export earnings has remained very low and it was 1% in 2008 cbn, 20. Download the full project from chapter one to five with reference and abstract. Impact of over dependence on oil revenue on economic growth. Article information, pdf download for does trade liberalisation policy. A study of agricultural and mineral resources exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. The study makes use of quarterly data that span between 1990.

The effects of the recent global economic crises on nigeria s economy have reaffirmed the urgent need for economic diversification in the country. The countries are algeria, angola, egypt, libya and nigeria. Although no country is immune to such global crises, the over reliance on oil export revenue by nigeria expose her economy excessively to external shocks. Impact of oil dependence on the nigerias economic growth. Following the empirical results of this study, we observed that non oil exports did not contribute much to economic growth in nigeria, but other indicators exert enough pressure on the strength of the economy, evidence from the result of the first model. The non oil export figure, according to adulugba, represents. In other words, the type of products oil and non oil that nigeria exports to other countries of the world really matters for the growth of nigerian economy.

Export promotion strategies or outward oriented strategies are policies that encourage exports, often through the free movement of capital, workers, enterprises, and students. This therefore makes it imperative to find out if non oil contributes to economic growth and to what extent has non oil exports contributed to the growth of the nigerian economy. Nigerias oil exports have fallen to 20year lows thanks to oil pipeline attacks. An empirical investigation of oil revenue and economic. It examined the significant role of non oil export on economic growth which the previous studies might have ignored and the aggregate non oil exports data used by them might bias their conclusions. Nigeria operates a mixed economic system that is a blend of socialism and capitalism. Jul 06, 2020 therefore, in my view, nigeria s 2020 budget assumptions, such as the oil production volume of 2.

Foreign direct investment, nonoil exorts and economic growth. Diversification of nonoil export product as a precondition. When analyzing the effects of differences in economic growth rates over time, it is generally the case that seemingly small differenc. It examined the significant role of non oil export on economic growth which the previous studies might have ignored and the aggregate non oil exports. To examine the transmission channel through which exchange rate is affected by crude oil export and thus economic growth in nigeria. Nigeria is currently one of africas leading oil producing nations and the worlds sixth major supplier. Apr 03, 2017 in this study, the non oil exports and economic development in nigeria will be examined. Determinants of nonoil export and economic growth in nigeria.

The oil sector grew by 5 percent in 2017 after its decline throughout 2016 and up to. Nigeria biannual economic update investing in human capital. To examine the relationship between nigerian foreign reserve and her economic growth through crude oil export. Contribution of non oil exports to economic growth in. Policies aimed at boosting the level and significance of the nonoil export were proposed. Oilrich nigeria is losing more than 80 percent of its revenue due to plummeting oil prices and the coronavirus epidemic, officials said on tuesday. Usman 2010 carried out a research on non oil export determinant and economic growth in nigeria from 19882008 using multilinear regression. Adedokun 2012 examined the effect of oil export revenue on economic growth in nigeria between the period of 1975 and 2009.

The result reveals a significant effect of non oil export on economic growth in both the long and short run. Does trade liberalisation policy enhance performance of nonoil. Pdf impact of nonoil export on economic growth in nigeria. The impact of over dependence on oil revenue on nigeria economic growth cannot be overemphasized this research work will explore all the negative implication of mono export on nigeria economy. Pdf nigeria given her natural resource base and large market size qualifies to be a world leading economy in production of goods and. To examine the impact of crude oil export revenue on economic growth in nigeria. Looking beyond oil gdp has slowed, driven by lower oil sector growth and a weaker non oil sector nigeria s economy grew by 2. Pdf this paper examines the economic impact of oil exportation on nigerian economy. Since the period of the emergence to the moment, nigeria has gradually increased its oil output and reliance. Impact of nonoil export on economic growth in nigeria. Introduction exportation is required by any economy to enhance revenue and usher in economic growth and development. The impact of non oil export on economic growth in nigeria has been one of the most debated issues in recent years. Impact of over dependence on oil revenue on economic.

Impact of oil dependency on nigeria s economy growth introduction in 1956, shellbp located oil in nigeria at oloibiri, delta state. The objective of the study is to look at the impact of oil exportation on the economic growth in nigeria. The impact of oil and nonoil exports on the economic growth. The performance of the non oil export sector in the past three decades leaves little or nothing to be desired, in spite of the efforts to promote non oil exports in nigeria. Jun 19, 2017 both oil and non oil exports have no significant impact on economic growth in nigeria. Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Foreign direct investment, nonoil exorts and economic. Pdf oil exportation and economic growth in nigeria researchgate. This article is brought to you for free and open access by the economics department at. In light of this, the nigerian economy left import substitution policies for the export promotion strategies or export led growth approach.

Nonoil exports in the economic growth of nigeria core. The research found that there is a significant and positive relationship between oil dependency and economic growth in nigeria. Gdp is fitted on exports, the exchange rate, investment, human capital. Exports, diversification, nigerian economy, crude oil, non oil commodities, economic development 1. This copy is for your personal, noncommercial use only. In the course of empirical investigation, various advanced econometric. Many countries rely on exports and imports to trade goods and services.

Nigeria is a member of the organization of petroleum exporting countries opec. Secondary data on gross domestic product gdp, used as a proxy for economic growth. Pdf how important is oil in nigerias economic growth. Impact of nonoil export on the economic growth of nigeria.

This paper concluded that non oil exports significantly affect economic growth in nigeria. Non oil exports are the products, which are produced within the country in the agricultural, mining and querying and industrial sectors that are sent outside the country in order to generate revenue for the growth of. May 12, 2019 the challenges of non oil export sector is not that it is being over shadowed by the oil export trade, but traceable to declining non oil export and loss of market share in the non oil trade globally is a clear evidence of how the non oil sector competitiveness of the nigerian economy has been consistently eroded over the last three decades. Inadequate policy on economic diversification has cause the economy to rely heavily on crude oil export as a major export commodity in the economy. Nigeria biannual economic update investing in human. The position of crude oil as the bed rock of the world financial system can only be ignored today at the worlds fall which makes it a vital sector of the economy leading to economic growth of the economy. Learn more about the united states exports and why they are important to the countrys economy. Determinants of nonoil export and economic growth in. The nigerian non oil sector plays a major role in the growth of the nigerian economy. The export sector value added had an insignificant negative correlation with.

Export led growth, real gdp, oil exports, non oil exports, ardl. Impact of over dependence on oil revenue on economic growth of nigeria. Secondary data were collected based on the model used in the research work and unit root test was conducted on the data to. Nigeria will have to negotiate with niger delta avengersthe militants hobbling its oil exports quartz.

Returns as of 1252020 returns as of 1252020 founded in 1993 by brothers tom and david gardner, the motley fool helps millions of people attain financial freedom through our we. In this study, the non oil exports and economic development in nigeria will be examined. The impact of oil price changes on the economic growth of. Post deregulation evaluation of nonoil export and economic.

Have non oil exports contributed to increases in the economic growth of nigeria. These are the core obsessions that drive our newsroomdefining topics of seismic importance to the global economy. The problems of low economic performance of nigeria cannot be attributed solely to instability of earnings from the oil sector, but as a result of failure by government to utilize productively the earnings from the export of crude oil from the mid 1970s to develop other sectors of the economy. Specifically, the paper will investigate the impact of non oil exports on economic growth in nigeria. Pdf is a hugely popular format for documents simply because it is independent of the hardware or application used to create that file. By afolabi khadijat december, 2011 chapter one introduction 1. The aim was to analyse the extent non oil export has impacted on economic growth in nigeria. It is therefore crucial for economic progress and this has informed the idea of export led growth.

On export and economic growth in nigeria, ozughalu 2009 assessed the impact of oil and non oil export on the growth of nigerian economy using granger causality test. Therefore, this research examines the impact of aggregate non oil sector and its determinant. This study will not only focus on this link but will also extend the data focusing on nigerian economy to fill this noticeable gap in literature. This paper examined the impact of non oil export on economic growth of nigeria beween 1986 and 2017. This study examines the contribution of non oil export to the growth of the nigerian economy for the period 19852015.

The rest part of the study is divided into theoretical underpinnings of external trade, empirical literature, methodology, empirical results and conclusions. The various private freedoms are still government regulated and are i nigeria operates a mixed economic system that is a blend of socialism and capitalism. The extractive sector in the nigerian economy is large and extensive, with oil playing a dominant role. The study utilized data from cbn statistical bulletin and unctad investment report from 19802016. Non oil exports are the products which are produced within the country in the agricultural, mining, and querying and industrial sectors that are sent outside the country in order to generate revenue for the growth of the economy excluding oil product. This paper examines the economic impact of oil exportation on nigerian economy from 1970 2012. The economy of nigeria is a middleincome, mixed economy and emerging market, with. The study examines the significant role of non oil export product on real economic growth which the previous studies might have ignored and the aggregate non oil exports product data used by them might bias their conclusions.