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The Presence of Dutch Disease in Nigeria: The Implication of Rise in Oil Revenue

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  • FALADE, Abidemi Olufemi Olusegun

    (Senate Research Consulting Firm)

Abstract

Nigeria major source of foreign earning has been from crude oil which has caused decline in manufacturing sector output over the years. This situation often leads to oil price fluctuations that adversely affect budget performance. The existing literatures in Nigeria has focused largely on agricultural productivity to determine the existence of Dutch Disease (DD) in Nigeria, but paid less attention to the manufacturing sector output. The study therefore, examined the presence of DD in Nigeria from the scope of manufacturing sector from 1981-2019. The data was sourced from Central Bank of Nigeria (CBN). Thereafter, The Augmented Dickey Fuller (ADF), Phillip Peron (PP) unit root test and Johansen Co-integration for pre-test; while, Toda-Yamamoto (TY) causality test and Vector Error Correction Model (VECM) were used for the formulated objectives.

Suggested Citation

  • FALADE, Abidemi Olufemi Olusegun, 2021. "The Presence of Dutch Disease in Nigeria: The Implication of Rise in Oil Revenue," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(6), pages 576-585, June.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:6:p:576-585
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    References listed on IDEAS

    as
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