IDEAS home Printed from https://ideas.repec.org/a/mth/raee88/v6y2014i4p53-74.html
   My bibliography  Save this article

International Competitiveness and Growth of the Nigerian Economy: A Structural VAR-Based Perspective

Author

Listed:
  • Alege, Philip O.

    (Department of Economics and Development Studies, College of Development Studies, Covenant University, Ota, Nigeria)

  • Okodua, Henry

    (Department of Economics and Development Studies, College of Development Studies, Covenant University, Ota, Nigeria)

Abstract

The empirical relationship between international competitiveness of the Nigerian economy and its consequences on economic growth dynamics was investigated in this study. Using export performance and real effective exchange rate as proxies for international competitiveness of the Nigerian economy, the relationship between international competitiveness of the Nigerian economy and its growth dynamics have been analytically explored in this study using the structural VAR framework. The study found that growth of real output contemporaneously responds positively to a positive shock to real effective exchange rate but responded contrary to theoretical expectation in the opposite direction to a positive shock to export performance. The structural/orthogonalized impulse response analysis and the forecast error variance decomposition results were largely consistent with theoretical expectations as well as the short-run SVAR results. These results suggest that there are no serious misalignment issues with the Nigerian currency but cast doubt on the ability of the current export structure of the Nigerian economy to be growth inducing.

Suggested Citation

  • Alege, Philip O. & Okodua, Henry, 2014. "International Competitiveness and Growth of the Nigerian Economy: A Structural VAR-Based Perspective," Research in Applied Economics, Macrothink Institute, vol. 6(4), pages 53-74, December.
    • Handle: RePEc:mth:raee88:v:6:y:2014:i:4:p:53-74
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/rae/article/view/4986/5511
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/rae/article/view/4986
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    2. M.Yusuf Tashrifov, 2005. "Monetary Policy Model of Tajikstan: A Structural Vector Autoregression Approach," International and Development Economics Working Papers idec05-9, International and Development Economics.
    3. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 17-25, Autumn.
    4. Matthew D. Shapiro & Mark W. Watson, 1988. "Sources of Business Cycle Fluctuations," NBER Chapters, in: NBER Macroeconomics Annual 1988, Volume 3, pages 111-156, National Bureau of Economic Research, Inc.
    5. Ian W. Marsh & Mr. Stephen Tokarick, 1994. "Competitiveness Indicators: A Theoretical and Empirical Assessment," IMF Working Papers 1994/029, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngozi Adeleye & Evans Osabuohien & Ebenezer Bowale & Oluwatoyin Matthew & Emmanuel Oduntan, 2018. "Financial reforms and credit growth in Nigeria: empirical insights from ARDL and ECM techniques," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 807-820, November.
    2. Philip O. Alege & Queen-Esther Oye & Omobola O. Adu & Barnabas Amu & Tolu Owolabi, 2017. "Carbon Emissions and the Business Cycle in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 1-8.
    3. Mariusz Hamulczuk & Karolina Pawlak, 2022. "Determinants for international competitiveness of the food industry in 43 countries worldwide: evidence from panel models," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(3), pages 635-667, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evans, Charles L. & Marshall, David A., 2007. "Economic determinants of the nominal treasury yield curve," Journal of Monetary Economics, Elsevier, vol. 54(7), pages 1986-2003, October.
    2. Bruns, Stephan B. & Moneta, Alessio & Stern, David I., 2021. "Estimating the economy-wide rebound effect using empirically identified structural vector autoregressions," Energy Economics, Elsevier, vol. 97(C).
    3. Gossé, Jean-Baptiste & Guillaumin, Cyriac, 2013. "L’apport de la représentation VAR de Christopher A. Sims à la science économique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(4), pages 309-319, Décembre.
    4. Justiniano, Alejandro & Primiceri, Giorgio E. & Tambalotti, Andrea, 2010. "Investment shocks and business cycles," Journal of Monetary Economics, Elsevier, vol. 57(2), pages 132-145, March.
    5. Gert Peersman, 2005. "What caused the early millennium slowdown? Evidence based on vector autoregressions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(2), pages 185-207.
    6. Keating, John W. & Nye, John V., 1999. "The Dynamic Effects of Aggregate Demand and Supply Disturbances in the G7 Countries," Journal of Macroeconomics, Elsevier, vol. 21(2), pages 263-278, April.
    7. Mantu Kumar Mahalik & John Nkwoma Inekwe & Kuntal Kumar Das & Umakant Dash & Augustine C. Arize, 2022. "Does the pattern of age dependency matter in the promotion of financial development in an emerging economy?," Applied Economics, Taylor & Francis Journals, vol. 54(48), pages 5622-5637, October.
    8. Quah, Danny, 1992. "The Relative Importance of Permanent and Transitory Components: Identification and Some Theoretical Bounds," Econometrica, Econometric Society, vol. 60(1), pages 107-118, January.
    9. Weber, Axel A., 1996. "Germany before and after unification: A structural VAR analysis," Economic Modelling, Elsevier, vol. 13(4), pages 575-601, October.
    10. Pedro José Pérez Vázquez, 2003. "Fuentes de variabilidad en las principales economías occidentales," Investigaciones Economicas, Fundación SEPI, vol. 27(3), pages 565-591, September.
    11. James H. Stock & Mark W. Watson, 1990. "Business Cycle Properties of Selected U.S. Economic Time Series, 1959-1988," Working Papers 1990-1, Princeton University. Economics Department..
    12. Catherine Bruneau & Olivier De Bandt, 1999. "La modélisation Var "structurel" : application à la politique monétaire en France," Économie et Prévision, Programme National Persée, vol. 137(1), pages 67-94.
    13. Piyachart Phiromswad, 2014. "Measuring monetary policy with empirically grounded identifying restrictions," Empirical Economics, Springer, vol. 46(2), pages 681-699, March.
    14. Martha Misas & Enrique López, 1999. "El producto potencial en Colombia: una estimación bajo var estructural," Coyuntura Económica, Fedesarrollo, September.
    15. Galán-Figueroa, Javier & Venegas-Martínez, Francisco, 2015. "Sintonía fina de la política monetaria mexicana entre objetivos e instrumentos durante la crisis 2007-2009," Sección de Estudios de Posgrado e Investigación de la Escuela Superios de Economía del Instituto Politécnico Nacional, in: Instituto Politécnico Nacional (ed.), Contribuciones de Política Fiscal y Monetaria en el México Contemporáneo, volume 0, chapter 7, pages 164-187, Escuela Superior de Economía, Instituto Politécnico Nacional.
    16. Kenneth D. West, 1993. "An Aggregate Demand–Aggregate Supply Analysis of Japanese Monetary Policy, 1973–1990," NBER Chapters, in: Japanese Monetary Policy, pages 160-188, National Bureau of Economic Research, Inc.
    17. Swamy, Vighneswara, 2020. "Macroeconomic transmission of Eurozone shocks to India—A mean-adjusted Bayesian VAR approach," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 126-150.
    18. Jörg Breitung & Ralf Brüggemann, 2019. "Projection estimators for structural impulse responses," Working Paper Series of the Department of Economics, University of Konstanz 2019-05, Department of Economics, University of Konstanz.
    19. repec:spo:wpecon:info:hdl:2441/1423 is not listed on IDEAS
    20. Ayda Eraydın & Bilge Armatlı Köroğlu & Hilal Erkuş Öztürk & Suna Senem Yaşar, 2008. "Network Governance for Competitiveness: The Role of Policy Networks in the Economic Performance of Settlements in the Izmir Region," Urban Studies, Urban Studies Journal Limited, vol. 45(11), pages 2291-2321, October.
    21. Johannes W. Fedderke, 2022. "Identifying supply and demand shocks in the South African Economy, 1960–2020," South African Journal of Economics, Economic Society of South Africa, vol. 90(3), pages 349-389, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:raee88:v:6:y:2014:i:4:p:53-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/rae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.