Title: EXPORT LED GROWTH HYPOTHESIS AND THE NIGERIAN ECONOMIC GROWTH
Authors:
Uzoma, Kelechi Promise, C.G. Uruakpa, Nwachukwu Athanasius. C. and Eguzoro Faustina N
Abstract:
A crucial policy ideal of utmost oil- producing economies, especially among developing countries like Nigeria, is sustainable diversification of public income sources. For utmost oil- producing economies, this depends significantly on exploring the full eventuality of exportation. Export is a crucial driver to economic growth and development. Import in Nigeria is categorized into oil, non-oil and service export and therefore will form the base of the analysis of this work. Oil export include the crude oil product been exported from Nigeria while Non-Oil export includes manufacturing and agrarian products been exported from Nigeria. Service import include the services been rendered by citizens of Nigeria to other countries. Looking at the benefactions of these export orders, forms the impulse for the work. The independent variables( Oil Export, Non-Oil Export, Service Export, Exchange rate and Affectation rate) chosen have direct impact on the economic growth independently. The unit root tests show that all the variables where of a mixed order 0 and 1 hence the methodology of ARDL Model. Autoregressive distributed lag ( ARDL) model and co-integration analysis are used in this work to estimate export- led growth hypothesis looking at the sustainability of oil and non-oil exports vis- à- vis growth and development in Nigeria. The retrogression result and the co-integration analysis show that there exists long run equilibrium between economic growth and export- led growth hypothesis and there’s growth substantiation of non-oil exports exists in Nigeria; it’s also sustainable. In other words, beyond oil painting import- led growth hypothesis, non-oil export- led growth hypothesis also holds in Nigeria. The study reveals that import impact significantly on profitable growth in Nigeria in the long run. The work therefore recommends in order to maintaining healthy economy, the non-oil export of the country should be well packaged for foreign acceptance seeing that it contributed favorably to the growth of Nigerian economy.
Keywords: Oil Export, Non-oil export, Service export, Economic growth.
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