Causative Factors and Dynamic Effects of Oil and Non-Oil Exports on Economic Growth in Nigeria

Abstract

This essay examines the complex link between oil and non-oil exports and its effect on Nigeria's economic development. Nigeria offers a fascinating case study to evaluate the dynamic interaction due to its large oil reserves and growing non-oil economy. Data for analysis spans the years 1986 to 2022. The estimated findings demonstrated that oil export has a favourable and considerable influence on economic growth in Nigeria. The dynamic ordinary least squares and the completely modified ordinary least square technique were used from the dynamic ordinary least square model. The findings also indicated that non-oil export had a favourable but little effect on Nigeria's economic growth throughout the time frame studied. The results for non-oil export were correctly signed but were determined to have little impact on Nigeria's economic growth. The outcome also demonstrated that gross fixed capital production had a negative and considerable influence on economic growth, contrary to a priori

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