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The Primary Sectors of the Economy and the Dutch Disease in Nigeria

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  • J. O. Olusi

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria.)

  • M. A. Olagunju

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria.)

Abstract

This study examines whether the Dutch Disease—a resource boom leading to the decline of the erstwhile tradable sector—is present in Nigeria in the light of the rejection of the Dutch Disease thesis in other studies on Nigeria. Quarterly data for our variables of interest were predominantly sourced from the International Financial Statistics of the IMF. The data are analysed through the use of vector autoregressive (VAR) modelling consisting of impulse response functions and variance decomposition analyses. Our results show that the Dutch Disease was diagnosed, albeit, as a delayed occurrence. This suggests that the government should lay more emphasis on the agricultural sector hitherto not given deserved attention.

Suggested Citation

  • J. O. Olusi & M. A. Olagunju, 2005. "The Primary Sectors of the Economy and the Dutch Disease in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(2), pages 159-175.
    • Handle: RePEc:pid:journl:v:44:y:2005:i:2:p:159-175
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    1. Barczikay, Tamás & Biedermann, Zsuzsánna & Szalai, László, 2020. "An investigation of a partial Dutch disease in Botswana," Resources Policy, Elsevier, vol. 67(C).
    2. Agaptus Nwozor & John Shola Olanrewaju & Solomon Adebayo Adedire & Ejalonibu Ebenezer Lawal, 2020. "Reform in a Limbo: The Politics and Politicization of Reforms in Nigeria s Petroleum Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 184-193.
    3. Joseph, Mawejje & Lawrence, Bategeka, 2013. "Accelerating Growth and Maintaining Intergenerational Equity Using Oil Resources in Uganda," Research Series 167526, Economic Policy Research Centre (EPRC).
    4. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    5. Maria-Dolores, Ramon & José Rodolfo, Morales, 2012. "The Natural Resource Curse: An Analysis of the Dutch Case based on Sectoral Economies of Scale," UMUFAE Economics Working Papers 26673, DIGITUM. Universidad de Murcia.
    6. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    7. Boufateh, Talel, 2016. "Cycle-Trend Dichotomy of the Dutch Disease Phenomenon," MPRA Paper 71741, University Library of Munich, Germany.
    8. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    9. Fakhri Issaoui & Talel Boufateh & Ghassen El Montasser, 2013. "The Dynamic Effect of Oil Rent on Industrial Value Added: a SVAR Approach," EERI Research Paper Series EERI RP 2013/04, Economics and Econometrics Research Institute (EERI), Brussels.
    10. Kirk Hamilton & John Hartwick, 2008. "Oil Stock Discovery And Dutch Disease," Working Paper 1163, Economics Department, Queen's University.
    11. Alssadek, Marwan & Benhin, James, 2021. "Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries," Resources Policy, Elsevier, vol. 74(C).

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