Short-Run and Long-Run Effects of Non-Oil Trade Export on Economic Growth in Nigeria
Keywords:
Trade Export; Non-oil Total Trade; Economic Growth; NigeriaAbstract
This study examined the short and long run effects of non-oil trade export on economic growth in Nigeria. Descriptive statistics and inferential statistics (unit root test, Johansen cointegration and error correction mechanism) were employed as the estimation techniques. The time series data on non-oil export (proxied by non-oil total trade, balance of trade, exchange rate and inflation rate); and economic growth (proxied by growth rate of Real Gross Domestic Product) were sourced and obtained from the Central Bank of Nigeria Statistical Bulletin and Nigerian Bureau of Statistics over a period of thirty (33) years (1986–2018). The study showed that non-oil total trade, balance of trade and exchange rate have positive and significant effects on economic growth in Nigeria while inflation rate has no significant effect on economic growth in Nigeria. Based on the finding of the study, it was concluded that non-oil trade export has positive and significant effects in the short run and long run on economic growth in Nigeria. It is recommended that full attention should be directed to the non-oil sector in other to make our produce competitive in international market.
References
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Lawal, A. I.; Nwanji, T. I.; Asaleye, A. & Ahmed, V. (2016). Economic Growth, Financial Development and Trade Openness in Nigeria: An Application of the ARDL Bound Testing Approach. General & Applied Economics Research Article, Cogent Economics & Finance, 4, pp. 1-15.
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Muhammad, M. & Benedict, N. (2015). The Impact of International Trade on Economic Growth in Nigeria: 1981 – 2012. European Journal of Business, Economics and Accountancy, 3(6), pp. 26-36.
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Okonkwo, I. V. & Madueke, N. M. (2016). Petroleum Revenue and Economic Development of Nigeria (1980 – 2013). IOSR Journal of Polymer and Textile Engineering (IOSR-JPTE), 3(2), pp. 39-55.
Onayemi, S. O. & Ishola, I. R. (2009). Diversifying the Productive Base of Nigeria, an Econometric Approach to the Assessment of Non- oil Export Promotion Strategies. International Research Journal of Finance and Economic, 1(24), pp. 209-222.
Owolabi-Merus, O.; Inuk, U. E. & Odediran, O. K. (2015). An Investigation into the Impact of International Trade in the Growth of Nigeria's economy. International Letters of Social and Humanistic Sciences, 61, (23), pp. 116-125.
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Stephen, E. A. & Obah, O. D. (2017). The Impact of International Trade on Economic Growth in Nigeria: An econometric analysis. Asian Finance & Banking Review, 1 (1), pp. 28-47.
Subasat, T. (2002). Does Export Promote Increase Economic Growth? Some Cross Section Evidence. Development Policy Review, 20(3), pp. 333-349.
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Ugochukwu, U. S. & Chinyere, U. P. (2013). The Impact of Export Trading on Economic Growth in Nigeria. International Journal of Economics, Business and Finance, 1(10), pp. 327-341.
Usman, O. A. (2011). Performance Evaluation of Foreign Trade and Economic Growth in Nigeria. Research Journal of Finance and Accounting, 2(2), pp. 12-24.
Vernon, R. (1966). International Investment and International Trade in the Product Cycle. Quarterly Journal of Economics, 80, pp. 209-307.
Yakubu, M. M. & Akanegbu B. N. (2015). Education Expenditure and Economic Growth in Nigeria: Granger Causality Analysis. Journal of Business Management and Economics, 3(4), pp. 52.
Abogan, O. P.; Akinola, E. B. & Baruwa, O. I. (2014). Non-oil Export and Economic Growth in Nigeria (1980-2011). Journal of Research in Economics and International Finance, 3 (1), pp. 1-11.
Adeleye J. O.; Adeteye O. S. & Adewuyi M. O. (2015). Impact of International Trade on Economic Growth in Nigeria (1988-2012). International Journal of Financial Research, 6 (3), pp. 163-172.
Adesuyi, O. O. & Odeloye, O. D. (2013). Foreign Trade and Economic Growth in Nigeria (1980-2010). Journal of Economics and Sustainable Development, 4(13), pp.73-88.
Akeem, O. U. (2011). Non-oil Export Determinant and Economic Growth. European Journal of Business Management, 3 (3), pp. 236-257.
Christopher, I.; Omoniyi, B. O. & Olufunke, B. O. (2014). Effects of Non-oil Export on the Economic Development of Nigeria. International Journal of Business and Management Invention, 3(3), pp. 27-32.
Dumani, M.; Nelson, J. & Siaisiai, S. T. (2018). Foreign Trade and its Impact on Economic Growth in Nigeria. International Journal of Economics, Commerce and Management, VI (4), pp. 748-761.
Dwivedi, D. N. (2006). Principles of economics. New Delhi: Vikas Publishing House PVT.
Fedor, G. (1992). On Exports and Economic Growth. Journal of Development Economics 12, pp. 59-73.
Finance map of world. (2013). Savings and Economic Growth, retrieved June 28, 2013, from google:http:// finance. Maps of world.com /savings/account/economic-growth.html.
Haberlar, G. (1959). International Trade and Economic Development. National Bank of Egypt Fiftieth Anniversary commemoration lectures, Cairo.
Helpman, E. & Krugman, P. (1985). Market Structure and Foreign Trade. Cambridge: MIT Press.
Imimole, B. & Imuoghele, L. E (2012). Impact of Public Debt on an Emerging Economy: Evidence from Nigeria (1980–2009). International Journal of Innovative Research and Development, 1(8), pp. 59-71.
Jin, J. C. (2002). Exports and Growth: Is the export-led Growth Hypothesis valid for Provincial Economies? Applied Economics, 34(1), pp. 63-76.
Lawal, A. I.; Nwanji, T. I.; Asaleye, A. & Ahmed, V. (2016). Economic Growth, Financial Development and Trade Openness in Nigeria: An Application of the ARDL Bound Testing Approach. General & Applied Economics Research Article, Cogent Economics & Finance, 4, pp. 1-15.
Lawal, E. O. & Ezeuchenne, K. (2017). International Trade and Economic Growth in Nigeria. Journal of Humanities and Social Science (IOSR-JHSS), 22(6), pp. 35-43.
Muhammad, M. & Benedict, N. (2015). The Impact of International Trade on Economic Growth in Nigeria: 1981 – 2012. European Journal of Business, Economics and Accountancy, 3(6), pp. 26-36.
Nicks, N. (2008). The history of entrepreneurship in Nigeria. Lagos: Bizcom Publisher.
Nwinee, B. F. & Olulu-Briggs, O. M. (2016). Trade openness, Financial Development, and the Nigerian Economy. American International Journal of Contemporary Research, 6(3), pp. 170-183.
Okonkwo, I. V. & Madueke, N. M. (2016). Petroleum Revenue and Economic Development of Nigeria (1980 – 2013). IOSR Journal of Polymer and Textile Engineering (IOSR-JPTE), 3(2), pp. 39-55.
Onayemi, S. O. & Ishola, I. R. (2009). Diversifying the Productive Base of Nigeria, an Econometric Approach to the Assessment of Non- oil Export Promotion Strategies. International Research Journal of Finance and Economic, 1(24), pp. 209-222.
Owolabi-Merus, O.; Inuk, U. E. & Odediran, O. K. (2015). An Investigation into the Impact of International Trade in the Growth of Nigeria's economy. International Letters of Social and Humanistic Sciences, 61, (23), pp. 116-125.
Richards, D. G. (2001). Export as a Determinant of Long run Growth in Paraguay, 1966-1996. Journal of Development Studies. 38(1), pp. 128-146.
Sajo, I., & Li, B. (2017). Financial Development, Export And Economic Growth In Nigeria. Theoretical Economics Letters, 7, Pp. 2239-2254.
Samuelson, P. A. (1973). Economics. H.C Graw Hill. Kogakusha Ltd.
Samuelson, P. A. & Nordhaus, W. D. (2005). Economics, Eighteenth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited.
Sheehey, E. J. (1990). Exports as a Factor of Production: A Consistency Test. World Development 21, pp. 155-160.
Stephen, E. A. & Obah, O. D. (2017). The Impact of International Trade on Economic Growth in Nigeria: An econometric analysis. Asian Finance & Banking Review, 1 (1), pp. 28-47.
Subasat, T. (2002). Does Export Promote Increase Economic Growth? Some Cross Section Evidence. Development Policy Review, 20(3), pp. 333-349.
Todaro, M. & Smith, S. (2010). Economic Development (10th ed.). Boston: Addison Wesley.
Ugochukwu, U. S. & Chinyere, U. P. (2013). The Impact of Export Trading on Economic Growth in Nigeria. International Journal of Economics, Business and Finance, 1(10), pp. 327-341.
Usman, O. A. (2011). Performance Evaluation of Foreign Trade and Economic Growth in Nigeria. Research Journal of Finance and Accounting, 2(2), pp. 12-24.
Vernon, R. (1966). International Investment and International Trade in the Product Cycle. Quarterly Journal of Economics, 80, pp. 209-307.
Yakubu, M. M. & Akanegbu B. N. (2015). Education Expenditure and Economic Growth in Nigeria: Granger Causality Analysis. Journal of Business Management and Economics, 3(4), pp. 52.
Published
2020-05-26
How to Cite
Ogunsanwo, O. F. ., Obisesan, O. G. ., & Olowo, S. O. . (2020). Short-Run and Long-Run Effects of Non-Oil Trade Export on Economic Growth in Nigeria: Array. Acta Universitatis Danubius. Œconomica, 16(2). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/257
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