Export and Economic Growth Nexus in Nigeria

Christopher Ehinomen, Oguntona Olalekan Daniel

Abstract


This study examines the export and economic growth nexus in Nigeria. The study sets out to examine if there exist a causal and long-run relationship between export and economic growth in Nigeria. The underpinning theoretical framework dwell in classical economic growth thought, neo-classical economic growth thought, and endogenous economic growth thought. The study employed the annual time series data from 1970 to 2010 for the following variables: Real gross domestic product (y), export values (expo), exchange rate (exr), imports value (imp), gross capital formation (cap), and labour force population (lbr); using econometric procedures in testing for causality with the use of granger causality test and autoregressive distributed lag (ARDL) to ascertain if there exists a long-run relationship. The results obtained indicated that there exist a uni directional relationship between export and economic growth; while the results of the ARDL showed a co-integration (long-run relationship) between export and economic growth in Nigeria. The policy implication as evidenced from the results of the study is that the government should endeavour to invest more into the export sector, promote diversification of the economy from its over dependence on crude oil, facilitate proper machineries and provide infrastructures to support and motivate export activities, which will ultimately by multiplier effect, lead to economic growth. Export policies should be directed to the sector in which the impact of an increase in economic growth will be both desirable and large.

Key words: Nigeria; Export; Economic growth; Causality; Co-integration; Infrastructure; Economy diversification


Keywords


Nigeria; Export; Economic growth; Causality; Co-integration; Infrastructure; Economy diversification

References


Abdus, S. (2011). Exploring Exports and Economic Growth Causality in Algeria. Journal of Economic and Behavioural Studies, 2(3), 92-96.

Amrinto, L. E. (2006). A Semi-Parametric Assessment of Export Led Growth in the Philippines.

Andre, C. J., & Joel (2007). Testing the Export Led Growth Hypothesis for Botswana: A Causality Analysis. University of Pretoria, Department of Economics Working Paper Series 2007-20.

Balassa, B. (1988). Export Policy Choices and Economic Growth in Developing Countries After the 1973 Oil Shock. Journal of Development Economics, 4(1), 23-55.

Bright, C. O. (2010). Nigerian Firms Non-Oil Involvement: An Economic Transformation Paradigm. European Journal of Scientific Research, 40(4), 547-556.

Pesaran, M. H., Yongcheol, S., & Richard, J. S. (2001). Bound Testing Approaches to the Analysis of Level Relationship. Journal of Applied Econometrics, 16, 289-326.

Young, D. (2007). The Stage of Economic Development Exports and Economic Growth: An Empirical Investigation. Bethume Cookman College. The African Economic and Research Review, 3(1).




DOI: http://dx.doi.org/10.3968%2Fj.mse.1913035X20120604.1043

Refbacks

  • There are currently no refbacks.


Reminder

How to do online submission to another Journal?

If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org