International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue X, October 2022|ISSN 2454-6186
Relationship Between Export and Economic Growth in Nigeria from 1986-2021
Atiman Kasima Wilson*, Umar Hafiz Bubari & Amina Bala Usman
Department of General Studies, Federal Polytechnic, Bali, Nigeria
*Corresponding Author
Abstract: All government of the world is faced with the challenges of poverty reduction, improve revenue generation, reduction in both external and domestic borrowing, and efficient allocation of resources. Many studies have showed that export has the capacity to achieve the aforementioned goals. Export is to send goods and services to another country for sale; it can also be seen as goods and services that are produced in one country and sold in another country. Whereas, there are mixed opinions by scholars about the relationship between export and economic growth, this study set out to investigate the relationship between export and economic growth in Nigeria in the period 1986-2021. The specific objective was also, to examine the trend in export and economic growth in Nigeria in the period 1986-2021. The study employed the secondary method of data collection. Time series data was collected from World Development Indicators 2021. The study employed the unit root test, co integration test and vector autoregressive technique (VAR) model with the use of Eviews 10 package to achieve the objectives of the study. The study found that export had positive relationship on economic growth during the period 1986- 2021.The study further recommended among others, restructuring of the oil sector in Nigeria in order to improve the foreign exchange revenue generated from crude oil and liquefied natural gas.
Keywords: Export, Economic Growth, Unit Root,Cointegration
I. INTRODUCTION
There have been many studies on the relationship between export and economic growth for instance,Okeme(2018) in a study on causal relationship between net-export and GDP using panel data from selected African countries found that long run exports, capital and labour were significant for high income countries on their GDP. Another study by Omotor(2008) on the role of exports in the economic growth of Nigeria using bound test from the period 1979-2005 found economic growth, exports, labour force and exchange rate are co integrated. Similar study from Nguyen (2016) analysed the impart of export on economic growth in Vietnam from 1990-2015 confirmed a significant and positive relationship between export and economic growth.
Accordingly Oruba (1998) and Iyoh (1995) cited in Douglason(2008)opine that export expansion leads to growth through the stimulation of technical change and investment or by demand spill over into other sectors of the economy.
Further studies like Egwuegbe and Uruakpka (2013) also, examined export impact on economic growth in Nigeria using time series data from 1986-2011. The study found export led growth hypothesis valid in Nigeria in the period reviewed and