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Resource Endowment And Export Diversification: Implications For Growth In Nigeria

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  • CHARLES Ayobola

    (Department of Economics, University of Lagos, Nigeria)

  • MESAGAN Ekundayo

    (Department of Economics, University of Lagos, Nigeria)

  • SAIBU Muibi

    (Department of Economics, University of Lagos, Nigeria)

Abstract

This paper examined the relationship between resource endowment and export diversification and its implication for economic growth in Nigeria based on data from 1981 to 2015. The result of the Granger causality test suggests that unidirectional causality runs from oil production to economic growth, while export diversification does not granger cause economic growth. From the error correction result, it was established that export diversification positively impacts growth from the last two periods, while in the current period, it has negative effect on growth. This means that the key issue with Nigerian economy might not be structural but institutional. That is, even if the economy is diversified, the expected result may still be a ruse without appropriate economic institutional reform. The study concludes that specialisation is preferred to diversification for Nigeria in the current circumstance. Hence, the key issue to sustain growth in Nigeria is not in the number of productive sectors but in their efficiency.

Suggested Citation

  • CHARLES Ayobola & MESAGAN Ekundayo & SAIBU Muibi, 2018. "Resource Endowment And Export Diversification: Implications For Growth In Nigeria," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 29-40, December.
    • Handle: RePEc:blg:journl:v:13:y:2018:i:1:p:29-40
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    Cited by:

    1. Isaac Azubuike Ogbuji & Ekundayo Peter Mesagan & Yasiru Olorunfemi Alimi, 2020. "The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 59-78, December.
    2. Mesagan, Ekundayo Peter & Eregha, Perekunah Bright, 2018. "Political Economy of Oil Resources Management in Nigeria: Lessons from Other Countries," MPRA Paper 95667, University Library of Munich, Germany, revised 15 Aug 2019.
    3. Mesagan, Ekundayo & Adenuga , Juliet, 2020. "Effects of Oil Resource Endowment, Natural Gas and Agriculture Output: Policy Options for Inclusive Growth," BizEcons Quarterly, Strides Educational Foundation, vol. 8, pages 15-34.
    4. Ekundayo Peter Mesagan & Kolawole Kushimo & Dominic Ikoh Umar, 2021. "Do fluctuations in exchange rate hinder non-oil export? An analysis of agriculture and manufacturing in Nigeria," SN Business & Economics, Springer, vol. 1(11), pages 1-23, November.
    5. Eregha, Perekunah B. & Mesagan, Ekundayo P., 2020. "Oil resources, deficit financing and per capita GDP growth in selected oil-rich African nations: A dynamic heterogeneous panel approach," Resources Policy, Elsevier, vol. 66(C).
    6. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    7. Eregha, Perekunah Bright & Mesagan, Ekundayo Peter, 2017. "The Emergence of Inclusive Growth: Issues, Challenges and Policy Options for Nigeria," MPRA Paper 95671, University Library of Munich, Germany, revised 15 Aug 2019.
    8. Mesagan, Ekundayo Peter & Charles, Ayobola Olufolake & Vo, Xuan Vinh, 2023. "The relevance of resource wealth in output growth and industrial development in Africa," Resources Policy, Elsevier, vol. 82(C).
    9. Charles Ayobola Olufolake & Anthony Onogiese Osobase & Wilson Friday Ohioze & Samuel Olayinka Musa & Tope Joshua Ojo, 2022. "Analysis of the impact of natural resources and globalization on environmental quality and economic growth: The study of SANE nations," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2022(2), pages 219-235.
    10. repec:gdk:wpaper:70 is not listed on IDEAS
    11. Mesagan, Ekundayo Peter & Alimi, Olorunfemi Yasiru & Vo, Xuan Vinh, 2022. "The asymmetric effects of exchange rate on trade balance and output growth," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    12. Mesagan, Ekundayo & Unah, Aboje & Idowu, Olamide & Alamu, Abidemi, 2019. "Oil Resource Abundance in Nigeria and Iran: Contrapuntal Effect on Social and Economic Welfare," BizEcons Quarterly, Strides Educational Foundation, vol. 4, pages 3-22.
    13. Peter Ekundayo Mesagan & Akanni Ismaila Yusuf & Azubuike Isaac Ogbuji, 2019. "Natural resource endowment and output growth: How crucial is deficit financing in managing resource-rich African economies?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 353-369, December.
    14. Ismaila Akanni Yusuf & Mohammed Bashir Salaudeen & Isaac Azubuike Ogbuji, 2022. "Exchange Rate Fluctuation and Inflation Nexus in Nigeria: The Case of Recent Recession," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 81-87.
    15. Yusuf, Ismaila Akanni & Mesagan, Ekundayo Peter & Amadi, Agatha Nkem, 2020. "Effect of financial deepening on stock market returns: The case of military and democratic post-SAP regimes in Nigeria," BizEcons Quarterly, Strides Educational Foundation, vol. 6, pages 3-21.
    16. Zarach, Zuzanna Helena & Parteka, Aleksandra, 2023. "Export diversification and dependence on natural resources," Economic Modelling, Elsevier, vol. 126(C).

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