IDEAS home Printed from https://ideas.repec.org/a/vrn/journl/y2023i2p139-152.html
   My bibliography  Save this article

Crude Oil Price Fluctuations and Manufacturing Sector Performance in Nigeria (1981 - 2019)

Author

Listed:
  • Babatunde Adekunle OKUNEYE

    (Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Ago-Iwoye ,Ogun State, Nigeria)

  • Peter Olugbenga OLUWO

    (Department of Economics, College of Management and Social sciences, Education, Lagos State University of Education (LASUED), Lagos State, Nigeria)

Abstract

Nigeria’s high import of manufactured products and the weak export of processed goods are indications of the palpable weakness of the sector. The paper examines the response of manufacturing performances to crude oil price fluctuations in Nigeria and considered annual data in Nigeria from 1981 to 2019. The paper evaluates fluctuation in crude oil price in relation to manufacturing sector performance in Nigeria. Hence, the need to find solution to the crude oil price fluctuations becomes inevitable. The data set was estimated using dynamic ordinary least square (DOLS) as the series is a mixture of me (0) and me (1). However, ex post facto research design was employed to realize the first objective. Phillips Perron and Bounds test were carried out to evaluate the F-statistic against the critical values. The results show that physical investment had negative value (-0.0466) and was significant at (1%) on manufacturing performance; also oil price fluctuations had negative value (-0.1399). Therefore, policy makers need to engage the Governments to create enabling environment and regulate the distortions in the crude oil price for manufacturing sector.

Suggested Citation

  • Babatunde Adekunle OKUNEYE & Peter Olugbenga OLUWO, 2023. "Crude Oil Price Fluctuations and Manufacturing Sector Performance in Nigeria (1981 - 2019)," Business & Management Compass, University of Economics Varna, issue 2, pages 139-152.
    • Handle: RePEc:vrn:journl:y:2023:i:2:p:139-152
    as

    Download full text from publisher

    File URL: https://journal.ue-varna.bg/uploads/20230627082434_890396630649a9cc25d57d.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ibrahim, Taofik, 2018. "Oil price Fluctuation and Aggregate Output Performance in Nigeria," MPRA Paper 88636, University Library of Munich, Germany, revised 12 Apr 2018.
    2. Joseph Ayoola Omojolaibi, 2013. "Does Volatility in Crude Oil Price Precipitate Macroeconomic Performance in Nigeria?," International Journal of Energy Economics and Policy, Econjournals, vol. 3(2), pages 143-152.
    3. Svetlana Aleksandrova, 2016. "Impact of Oil Prices on Oil Exporting Countries in the Caucasus and Central Asia," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 447-460, December.
    Full references (including those not matched with items on IDEAS)

    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. Fakhri Hasanov & Jeyhun Mikayilov & Cihan Bulut & Elchin Suleymanov & Fuzuli Aliyev, 2017. "The Role of Oil Prices in Exchange Rate Movements: The CIS Oil Exporters," Economies, MDPI, vol. 5(2), pages 1-18, April.
    2. Ding Chen & Umar Muhammad Gummi & Shan-Bing Lu & Asiya Mu'azu, 2020. "Modelling the impact of oil price fluctuations on food price in high and low-income oil exporting countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(10), pages 458-468.
    3. Gulmira Azretbergenova & Aziza Syzdykova, 2020. "The Dependence of the Kazakhstan Economy on the Oil Sector and the Importance of Export Diversification," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 157-163.
    4. Aye, Goodness C. & Odhiambo, Nicholas M., 2021. "Oil prices and agricultural growth in South Africa: A threshold analysis," Resources Policy, Elsevier, vol. 73(C).
    5. Katarzyna Czech & Ibrahim Niftiyev, 2021. "The Impact of Oil Price Shocks on Oil-Dependent Countries’ Currencies: The Case of Azerbaijan and Kazakhstan," JRFM, MDPI, vol. 14(9), pages 1-14, September.
    6. Pazouki, Azadeh & Zhu, Xiaoxian, 2022. "The dynamic impact among oil dependence volatility, the quality of political institutions, and government spending," Energy Economics, Elsevier, vol. 115(C).
    7. Alexander Bass, 2019. "Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 288-294.
    8. Maku Olukayode E. & Ogede Jimoh S. & Osisanwo Bukonla G., 2021. "Oil Price and Macroeconomic Fundamentals in African Net Oil-Exporting Countries: Evidence from Toda–Yamamoto and Homogeneous Causality Tests," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 9(1), pages 102-114, September.
    9. Shuddhasattwa Rafiq & Ruhul Salim, 2014. "Does oil price volatility matter for Asian emerging economies?," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 417-441.
    10. Udabah, Sylvester & Okolo, Chimaobi, 2018. "Oil Price and Exchange Rate Volatilities: Its Implications on the Cost of Living in OPEC Member Country - Nigeria," MPRA Paper 86509, University Library of Munich, Germany.
    11. Bello Abdullahi MUHAMMAD & Muhammad Shehu SHUAIBU & Mohammad Junaid ALAM & Lawan Nasiru SALISU, 2023. "The Asymmetric Impact of Oil Price Volatility on Nigeria's Inflation," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 5-16.
    12. Charfeddine, Lanouar & Barkat, Karim, 2020. "Short- and long-run asymmetric effect of oil prices and oil and gas revenues on the real GDP and economic diversification in oil-dependent economy," Energy Economics, Elsevier, vol. 86(C).
    13. Clovis Wendji Miamo & Elvis Dze Achuo, 2021. "Crude Oil Price and Real GDP Growth: An Application of ARDL Bounds Cointegration and Toda-Yamamoto Causality Tests," Economics Bulletin, AccessEcon, vol. 41(3), pages 1615-1626.
    14. Umar Muhammad Gummi & Yang Rong & Utiya Bello & Abdulhamid Sillah Umar & Asiya Mu'azu, 2021. "On the Analysis of Food and Oil Markets in Nigeria: What Prices Tell Us from Asymmetric and Partial Structural Change Modeling?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 52-64.

    More about this item

    Keywords

    Dynamic Ordinary Least Square; Manufacturing Sector Performance; Crude Oil Price Fluctuations; and Physical Investment;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    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:vrn:journl:y:2023:i:2:p:139-152. 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: Yana Doneva (email available below). General contact details of provider: https://edirc.repec.org/data/uevarbg.html .

    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.