THE IMPACT OF NONOIL EXPORT ON ECONOMIC GROWTH IN NIGERIA 1986-2010

ABSTRACT

The essence of this work has been to determine the effect of nonoil export on economic growth in Nigeria, during the period of 19862010. In carrying out this study, secondary data were collected and empirical analysis was made. To achieve these objectives, multiple regressions were used in analyzing the data. The empirical results reveal that nonoil export is statistically significant to Nigeria economic growth. On the other hand, oil export also has been significant to Nigeria Economic growth of the nonoil export while government expenditure GEX has not been significant to Nigerias economic growth of the nonoil exports. Following this, some recommendations which include encouraging financial institutions, improving in data collection and banking, efficient allocation and use of resources, government base investing in nonoil sector in other to diversify the economy from monoculture economy to a multicultural economy and creating economic environment which will help boost the activity of nonoil export sector.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

There is a number of reasons for a country to be concerned about its rate of economic growth. Economic growth is desired by both affluent and nonaffluent economies. Economic growth is the desire for higher levels or real per capital income, real output which must grow faster than the production of the economy in question. Economists, policymakers, public and private sectors work ceaselessly towards attaining economic growth by the use of development and growth models and policies. Among the policies used are trade policy Import and export policies, monetary policy, exchange rate policy, fiscal policy, market etc. In this study, the nonoil exports and economic development in Nigeria will be examined.

Nonoil exports are the products, which are produced within the country in the agricultural, mining and querying and industrial sectors that are sent outside the country in order to generate revenue for the growth of the economy excluding oil products. These nonoil export products are coal, cotton, timber, groundnut, cocoa, beans etc. Today, as in the past, the growth of Nigerian economy remains partly dependent upon increasing productivity of the agricultural sector. Helleiner 2002:124 states that no matter how much development and structural transformation achieved, it will remain its relative dominance in the economy to many decades to come. Precisely, it is from agricultural exploits that the economy has received its principal stimulus to economic growth.