Export Performance in Nigeria and China: A Comparative Study

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

Export Performance in Nigeria and China: A Comparative Study

Mogaji, Oluwafemi¹, Falade, Abidemi Olufemi Olusegun^2
1,2Postgraduate Student, Department of Economics, Adekunle Ajasin University, Akungba-Akoko, Ondo-State, Nigeria

Abstract: Exports are drivers and indicators of long-term economic growth and sustainable development in any given economy. Despite its importance most of the reviewed studies focused on the export performance and macroeconomics variable in a country, without considering a comparative study between two countries.
The study therefore, examined the comparative analysis of export performance in Nigeria and China from1980-217. The study relied on secondary data which were collected from Central Bank of Nigeria (CBN) Statistical Bulletin and Word Bank Development Indicator with the adoption of Vector Autoregressive model (VAR) for the formulated objective.
The VAR result showed that in both Nigeria and China gross domestic product stimulated export performance with 2.5% and 0.9% respectively. Also, findings revealed that gross fixed capital formation contributed 2.9% to Nigerian economy performance whereas, exchange rate contributed 1.9% to Chinese economy performance. Furthermore, consumer price index had no significance influence on export performance in both countries.
The study therefore, concluded that gross domestic product jointly influenced economy performance of both countries with greater effect on Nigerian export performance; while gross fixed capital formation and exchange rate individually influenced it in Nigerian and China. It was recommended that the governments in both countries should introduce policies that will promote exports through gross domestic product. Likewise, Nigerian government should continue spending on her fixed capital formation especially in areas like infrastructural development; while firms should be encouraged to spend more on fixed assets.

Keywords: Export performance, gross domestic product, gross fixed capital formation, Vector Autoregressive model (VAR)

I. INTRODUCTION

Exports of goods and services by a country provide foreign exchange to the country and enable such country to import its needs such as intermediate goods, consumption goods, capital goods, etc. According to Nguyen (2011) both imports and exports are beneficiary to a country that involves in them, imports of intermediate goods and capital goods facilitate economic growth through technological diffusion. For export, it makes foreign exchange available for a country likewise encourages local production especially in country that are more technological advance like China. In lieu of this, Awokuse (2007) remarks that exports allow capital formation and thus stimulates output growth through earning foreign exchange and imports of intermediate goods.

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