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  DOI Prefix   10.20431


 

International Journal of Managerial Studies and Research
Volume 3, Issue 7, 2015, Page No: 104-112

Diversification of Non-Oil Export Product as a Precondition for Acceraleted Real Economic Growth in Nigeria

Dr. Nwankwo1, Odi.Fcib1

1.Department of Banking and Finance Kogi State University, Anyigba Kogi-Nigeria


Citation : Dr. Nwankwo, Odi.Fcib, Diversification of Non-Oil Export Product as a Precondition for Acceraleted Real Economic Growth in Nigeria International Journal of Managerial Studies and Research 2015 , 3(7) : 104-112

Abstract

The study investigates the diversification of non-oil export products as a precondition for acceraleted real economic growth in Nigeria 1981 and 2014. The study examines the significant role of non-oil export product on real economic growth which the previous studies might have ignored and the aggregate nonoil exports product data used by them might bias their conclusions. In achieving the objectives of the study, Ordinary Least Square Methods involving Error correction mechanism, co-integration, over-parametization and parsimonious were adopted. In testing for the time series properties, the evidence from estimated economic models suggests that all the variables examined are stationary at first difference I ( I ) using the Augmented Dickey- Fuller (ADF) and Phillips-Perron. Besides, Johansen Co integration test reveals that the variables are co integrated which confirms the existence of long-run equilibrium relationship between the variables. Thus, this suggests that all the variables tend to move together in the long run. The study reveals that the implication of diversification of non-oil export product on the economic growth was moderate and not all that heartening as a unit increase in non-oil export product impacted positively by 38% on the productive capacity of goods and services in Nigeria during the period. This was evident in the study that the policies on non-oil products during the period in Nigerian do not sufficiently encourage non-oil export, thus reduce their contributions to growth. This study therefore predicts an imminent collapse of the Nigerian non-oil sector in the nearest future if immediate remedial measures are not taken to strengthen the sector. The study among other things encourages the government to strengthen the legislative and supervisory framework of the non-oil products in Nigeria and diversify the economy to ensure maximum contributions from all faces of the sectors to economic growth of Nigeria


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