Non-Oil Exports And Economic Growth In Nigeria: A Disaggregated Approach
Obayori Joseph Bidemi
Institute of International Trade and Development University of Port Harcourt, Nigeria
Godly Otto
Institute of International Trade and Development University of Port Harcourt, Nigeria
Dresmann Austin Inaton
Institute of International Trade and Development University of Port Harcourt, Nigeria
Keywords: Beverage, Economic growth, Non-oil exports, Textile, Tobacco
Abstract
Against the clamour for diversification of the economy and slow growth rate of gross domestic product (GDP) in Nigeria, the study examined the role of non-oil exports on economic growth in Nigeria using a disaggregated approach from 1999–2020. The objectives of the study were to; determine the effect of hide and skin exports on economic growth; determine the impact of textile exports on economic growth; and examine the impact beverage and tobacco product exports on economic growth in Nigeria. Semi-annual data were collected from Central Bank of Nigeria statistical bulletin. The technique of Autoregressive Distributed Lag (ARDL) model was used. The Augmented Dickey Fuller unit root test was used to ascertain the order of integration of the variables. The unit root test results showed that, some variables were stationary at order zero, while other were at order one. The ARDL results showed the coefficient of 60%. Thus, the model is a good fit. In the long-run, non-oil exports have positive relationship with economic growth in Nigeria. In the short-run, textile exports as well as hide and skin exports have positive and significant relationship with economic growth. But, beverages and tobacco exports has positive but insignificant relationship with economic growth. Based on these findings, the study recommended amongst others that, the various components of the non-oil sectors such as agriculture, mining and service sectors, should be given urgent developmental priority because of their advantage of value addition.