ARCHIVES
VOL. 4, ISSUE 1 (2022)
Diversification of revenue base and growth synthesis: Macrofinametric evidence from Nigeria
Authors
Ejem Chukwu Agwu
Abstract
This study is as a result of the intractable and hydra head problems associated with a mono-economy; prone to depletion, international price shock and unfavourable quota arrangement and other economic mayhem. Most especially now that the COVID-19 pandemic is ravaging the world economy, which has made the oil price to remain volatile in the global market. This study used data obtained from the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics for economic growth, proxied by the Gross Domestic Product, Revenues from Oil Export and Non-Oil Export 1981 to 2020. The study was subjected to various macrofinametric tools in order to have a solid foundation to make inference that will be trusted by policy makers and other relevant bodies. After the various analyses, it was observed that the revenue from oil and non-oil exports insignificantly relate to economic growth in Nigeria. It was also found that revenue from the oil export and non-oil export separately and jointly do not cause economic growth in Nigeria. This study also found that revenue from oil export and non-oil exports will have positive and significant relationship with economic growth in the long run. Again that own shock exerted the greatest influence in the cause of variation on the economy. The researcher therefore calls for a shift from the emphasis on single based (oil sector) to properly diversified revenue based economy in Nigeria. Emphasis should be withdrawn from oil and non-oil sectors structured economy; not only on the mantra of oil and non-oil based revenue, rather a broad based revenue base (multiple sources based).
Download
Pages:4-15
How to cite this article:
Ejem Chukwu Agwu "Diversification of revenue base and growth synthesis: Macrofinametric evidence from Nigeria ". International Journal of Finance and Commerce, Vol 4, Issue 1, 2022, Pages 4-15
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.