IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 9 2024
DOI: 10.56201/ijssmr.v10.no9.2024.pg21.34

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Empirical Investigation of oil And Non-Oil Export Earnings and Economic Development in Nigeria

Bright O. OHWOFASA, Sunday M. AGUWAMBA (PhD), R. ADEGHE PhD

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Abstract

The objective of the study is to assess the influence of oil and non-oil export earnings on economic development in Nigeria. The autoregressive distributed lag (ARDL) model was utilized for the short run and long run analysis. The data which were sourced from the Central Bank of Nigeria statistical bulletin and annual report and statement of account for various issues covered the period, 1986-2023. Accordingly, the study found evidence of long run equilibrium relationship between economic development and the independent variables. Specifically, the study found that in the short run, non-oil export earnings, oil export earnings, exchange rate and trade openness had statistical significant effect on economic development in Nigeria. Surprisingly, in the long run no relationship could be established between all four independent variables and economic development as the variables were statistically insignificant. Among other things, the study recommended that government and policy makers should focus more attention on the non-oil sector since the international prices for its products are less volatile thereby creating more stable revenue sources for the government. Finally, government should intensify diversification of the economy away from oil to non-oil exports such as agriculture, solid minerals and manufacturing products.

keywords:

Oil export earnings, Non-oil export earnings, Economic development, Nigeria.

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