Resource Endowment and Export Diversification: Implications for Growth in Nigeria
This paper examined the relationship between resource endowment and export diversification and its implication for economic growth in Nigeria based on data from 1981 to 2015. The result of the Granger causality test suggests that unidirectional causality runs from oil production to economic growth,...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Sciendo
2018-04-01
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| Series: | Studies in Business and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sbe-2018-0003 |
| _version_ | 1811272823084154880 |
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| author | Charles Ayobola Mesagan Ekundayo Saibu Muibi |
| author_facet | Charles Ayobola Mesagan Ekundayo Saibu Muibi |
| author_sort | Charles Ayobola |
| collection | DOAJ |
| description | This paper examined the relationship between resource endowment and export diversification and its implication for economic growth in Nigeria based on data from 1981 to 2015. The result of the Granger causality test suggests that unidirectional causality runs from oil production to economic growth, while export diversification does not granger cause economic growth. From the error correction result, it was established that export diversification positively impacts growth from the last two periods, while in the current period, it has negative effect on growth. This means that the key issue with Nigerian economy might not be structural but institutional. That is, even if the economy is diversified, the expected result may still be a ruse without appropriate economic institutional reform. The study concludes that specialisation is preferred to diversification for Nigeria in the current circumstance. Hence, the key issue to sustain growth in Nigeria is not in the number of productive sectors but in their efficiency. |
| first_indexed | 2024-04-12T22:47:11Z |
| format | Article |
| id | doaj.art-9d2aeed42b7a451590e76745214fde8a |
| institution | Directory Open Access Journal |
| issn | 2344-5416 |
| language | English |
| last_indexed | 2024-04-12T22:47:11Z |
| publishDate | 2018-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj.art-9d2aeed42b7a451590e76745214fde8a2022-12-22T03:13:30ZengSciendoStudies in Business and Economics2344-54162018-04-01131294010.2478/sbe-2018-0003sbe-2018-0003Resource Endowment and Export Diversification: Implications for Growth in NigeriaCharles Ayobola0Mesagan Ekundayo1Saibu Muibi2Department of Economics, University of Lagos, NigeriaDepartment of Economics, University of Lagos, NigeriaDepartment of Economics, University of Lagos, NigeriaThis paper examined the relationship between resource endowment and export diversification and its implication for economic growth in Nigeria based on data from 1981 to 2015. The result of the Granger causality test suggests that unidirectional causality runs from oil production to economic growth, while export diversification does not granger cause economic growth. From the error correction result, it was established that export diversification positively impacts growth from the last two periods, while in the current period, it has negative effect on growth. This means that the key issue with Nigerian economy might not be structural but institutional. That is, even if the economy is diversified, the expected result may still be a ruse without appropriate economic institutional reform. The study concludes that specialisation is preferred to diversification for Nigeria in the current circumstance. Hence, the key issue to sustain growth in Nigeria is not in the number of productive sectors but in their efficiency.https://doi.org/10.2478/sbe-2018-0003resource endowmentexport diversificationspecialisationgrowthnigeria |
| spellingShingle | Charles Ayobola Mesagan Ekundayo Saibu Muibi Resource Endowment and Export Diversification: Implications for Growth in Nigeria Studies in Business and Economics resource endowment export diversification specialisation growth nigeria |
| title | Resource Endowment and Export Diversification: Implications for Growth in Nigeria |
| title_full | Resource Endowment and Export Diversification: Implications for Growth in Nigeria |
| title_fullStr | Resource Endowment and Export Diversification: Implications for Growth in Nigeria |
| title_full_unstemmed | Resource Endowment and Export Diversification: Implications for Growth in Nigeria |
| title_short | Resource Endowment and Export Diversification: Implications for Growth in Nigeria |
| title_sort | resource endowment and export diversification implications for growth in nigeria |
| topic | resource endowment export diversification specialisation growth nigeria |
| url | https://doi.org/10.2478/sbe-2018-0003 |
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