A Comparative Analysis on the Role of Crude Oil and Non-Oil Exports on Nigerian Economy

Fiiwe, James Leekaaga; Turakpe, Morrison Jostus

doi:10.2139/ssrn.2947354

Cited by 2 publications

(5 citation statements)

References 3 publications

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“…This proves that non-oil exports have the potential to improving economic growth in Nigeria and diversification from oil to non-oil exports would greatly reduce our over reliance on oil and increase our foreign exchange earnings. This result is in line with previous studies of Fiiwe andTurakpe (2017), Shah, Abrar-ulhag andFarooq (2015), Raj and Chand (2017), Nwodo and Asongwa (2017), Ugwuegbe and Uruakpa (2013). On the other hand, it would agree with the results of Ogunjimi, Aderinto and Ogunro (2015) and Faridi (2012) on the negative relationship between non-oil exports and economic growth.…”

Section: Discussion Of Findingssupporting

confidence: 93%

“…This shows the role of non-oil exports in contributing to the growth of Nigerian economy which is largely dependent on oil revenue whose shock would have adverse effects on the economy. This assertion has been supported by the works of Gbaiye, Ogundipe, Osabuohien, Olugbire, Adeniran, Bolaji-Olutunji, Awodele and Aduradola (2013), Edeme, Ifelunini and Nkalu (2016) and Fiiwe and Turakpe (2017).…”

Section: Discussion Of Findingsmentioning

confidence: 79%

“…The discovery of crude oil in Nigeria has had both negative and positive effects on the economy. Negatively, the effect of oil exploration on the oil well communities and its inhabitants has led to many issues in the country's political, social and economic life (Fiiwe & Turakpe, 2017). Although it is not questionable if the country has had large proceeds from the export of petroleum products, the effect of such proceeds on the growth of the Nigerian economy is questionable.…”

Section: Review Of Related Literaturementioning

confidence: 99%

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Evaluation of the Impacts of Non-Oil Exports on Economic Growth in Nigeria Between 1986-2018

Chinyere¹,

Samuel²,

Nkama³

et al. 2021

African Journal of Accounting and Financial Research

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Non-oil exports have been seen to be very vital in economic growth and development, especially for developing economics. Despite the poor contribution of non-oil exports to economic growth in Nigeria, this study is inspired by the inconsistencies in empirical findings regarding the connection and effect of non-oil exports on the economy. The objective of the study was to determine the effect of non-oil exports on economic growth in Nigeria. An ex-post facto research design was adopted. The time frame of thirty three (33) years, from 1986 to 2018 was adopted to allow for a large number of observations which will improve the robustness of the results. The data was obtained from the Central Bank of Nigeria (CBN) statistical bulletin of 2017. The Ordinary Least Square (OLS) estimation technique was applied in guesstimating the models. E – views 9.0 was the econometric software used for the analysis. The result revealed that non-oil exports have no significant effect on the growth rate of real gross domestic product, agricultural contribution to real gross domestic product is not significantly affected by exports of non-oil products even though there is evidence of a positive but insignificant correlation between them. Manufacturing capacity utilization is not significantly influenced by variation in Nigeria’s non-oil exports. Non-oil exports are positively associated with manufacturing capacity utilization. Economic growth in Nigeria has not been significantly affected by non-oil exports despite the various non-oil promotion strategies by the government. We recommend that cost and access to financial services for non-oil exporters be moderate or relaxed.

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Section: Discussion Of Findingssupporting

confidence: 93%

Section: Discussion Of Findingsmentioning

confidence: 79%

Section: Review Of Related Literaturementioning

confidence: 99%

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Evaluation of the Impacts of Non-Oil Exports on Economic Growth in Nigeria Between 1986-2018

Chinyere¹,

Samuel²,

Nkama³

et al. 2021

African Journal of Accounting and Financial Research

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“…Adeyemi and Olufemi (2016) underscored the need that capacity utilization is important because capital is very scarce, and in most scenarios not fully utilized where it is available. Agreeing to Afroz and Roy, as cited in Fiiwe and Turakpe (2017), the hypothesis of economies of scale is of the assumption that a cost-minimizing firm tends to increase the utilization of its capital in case the returns to scale diminishes as its production increases that is, the rate of capacity utilization can be decided endogenously. Hence, the capacity utilization rate remains a vital concept.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Njiforti and Adubi as cited in Ekiran, Awe and Ogunjobi (2014) noted further that these resources make an impression which demonstrates that in case these colossal resources are well overseen and kept up, there may rise within the nation, a dynamic agricultural sector steady of food and raw materials, selfsufficiency for the increasing population, and manufacturing sector respectively. Previous studies in Nigeria mostly focused on non-oil exports as it relates to economic growth (see Fiiwe & Turakpe, 2017;Ewetan, Fakile, Urhie & Oduntan, 2017;Ewubare, Ajie & Ojiya, 2017;Eze, 2017;Akpan, Nwosu & Eweke, 2017;Kromtit, Kanadi, Ndangra & Lado, 2017;Ugwu, 2017, etc.). On non-oil exports and manufacturing activities, we found Seyed (2015) and Alam, Abbasi, and Baseri (2014) for Iran.…”

Section: Introductionmentioning

confidence: 99%

Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa

Ogunewe

Ananwude

Nduka

2020

FER

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Purpose: This paper presents an analysis of the effect of non-oil exports on the manufacturing sector growth in an oil-rich country in Africa – Nigeria from 1986 to 2018. In clear terms, we evaluated how manufacturing sector capacity utilization is affected by non-oil exports. Methods: The Ordinary Least Square (OLS) estimation technique was applied in estimating the model and was lagged by two years. The long-run relationship was determined using the traditional Johansen co-integration methodology. How manufacturing sector growth is affected by non-oil exports was evaluated using the Granger Causality technique. The Augmented Dicky-Fuller (ADF) and Phillips-Perron tests were applied to check the stationarity properties of the data. Results: The growth in the manufacturing sector in Nigeria has not been significantly affected by non-oil export despite the various non-oil export promotion strategies initiated by the government. Implication: A major implication of the finding is that the cost and access to financial services for non-oil exporters should be reduced or relaxed by the Central Bank of Nigeria. High-interest rates charged by commercial banks and little disbursement characterized by the volume of commercial banks credit affect manufacturing firms concerning acquiring modern plants and machinery which results in a poor quality of non-oil exports.

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A Comparative Analysis on the Role of Crude Oil and Non-Oil Exports on Nigerian Economy

Cited by 2 publications

References 3 publications

Evaluation of the Impacts of Non-Oil Exports on Economic Growth in Nigeria Between 1986-2018

Evaluation of the Impacts of Non-Oil Exports on Economic Growth in Nigeria Between 1986-2018

Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa

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