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Manufacturing Exports and Import of Capital Goods Nexus: the Nigeria's Case

Author

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  • Damilola Felix Arawomo

    (Surveillance and Forecasting Department, Nigerian Institute of Social and Economic Research (NISER))

Abstract

The declining share of manufactured export in total export in Nigeria has continued to raise some concerns. The apprehension is based on the preference of the sector promote economic growth. Among others, one of the factors that could be responsible for this is poor technological capacity, hence the need for importation of foreign capital goods. This paper used the UECM-Bounds test and Error Correction Model (ECM) based on 1970 and 2012 data to obtain evidence for the long-run and short-run relationship between manufacturing export, capital import, human capital and real effective exchange rate in Nigeria. Findings revealed that manufacturing export, capital import, human capital and real effective exchange rate are cointegrated. The results further showed that capital import impede manufacturing export in the both short and long-run in Nigeria.

Suggested Citation

  • Damilola Felix Arawomo, 2014. "Manufacturing Exports and Import of Capital Goods Nexus: the Nigeria's Case," Economics Bulletin, AccessEcon, vol. 34(3), pages 1522-1529.
    • Handle: RePEc:ebl:ecbull:eb-14-00539
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    References listed on IDEAS

    as
    1. Francesco Caselli & Daniel J. Wilson, 2002. "Importing technology," Proceedings, Federal Reserve Bank of San Francisco, issue nov.
    2. Alexis Habiyaremye, 2013. "Imported Capital Goods and Manufacturing Productivity: Evidence from Botswana's Manufacturing Sector," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 581-604, December.
    3. Jiranyakul, Komain, 2011. "Are Thai Manufacturing Exports and Imports of Capital Goods Related?," MPRA Paper 45654, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • F1 - International Economics - - Trade
    • F0 - International Economics - - General

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