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Impact Of Non-oil Export On Nigerian Economy (1986-2010)
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But
the story of its decline is as pathetic as its impact on industry that
relied heavily on the sector for raw material. Thus, the decline comes
with surge of revenue from oil (oil export). But the discovery of crude
oil alone cannot be held responsible completely for the misfortunes or
decline of the agricultural sector. The policy instruments put in place
by successive government were more of lip- service than concrete action.
The
creation of marketing board contributes greatly to the decline of
non-oil export since the board has the stole right to export the
commodities. It is also pertinent to say that fixing of export product
prices by marketing board discouraged further private investments in the
sector. Further, the sector suffers from inadequate credit facilities;
they have no security to back up their loan applications. Those who are
lucky to be given loans do not make proper use of them. Even existence
serious was neglected, infrastructural facilities, not provided, CBN
objectives on agricultural loans floated. The package of policies used
did not only discriminate against export development but also disturbed
the economy in several other ways. For instance an exchange rate of an
artificially high level was maintained which in turn reduce the
profitability of exports, raised domestic cost alone world process and
reduced level maintenance uncompetitive in the world market.
In view
of these problems resulting from the inappropriate use of policies
persisted over times and necessitated the need to change policy
direction. More emphasis was directed towards the promotion of non-oil
exports. Various monetary and fiscal policies have been restored to
various governments in Nigeria to encourage the non-oil performance and
the economy generally.
The question today is to what extent has the
redirection in policy affected the performance of non-oil export in
Nigeria? But more simply, this research work is set to answer the
following research questions:-
(1) To what extent has the non-oil exports sector contributed to
the overall gross domestic product (GDP) of the economy?
It is on this background that this research work is focused.
1.3 OBJECTIVE OF THE QUESTION
This
research has a particular focus that aim at examining the causes of
growth in government revenue using non-oil revenue of the government as
an instrument. The non-oil revenue takes the range of products as
agriculture and manufacturing. The major objectives are broadly defined
as follows;
a) To empirically find out the impact of non-oil export earnings on
the nation Gross Domestic Product (GDP)
B) To evaluate government policies or measures towards boosting non-oil sector contribution to the economy.
1.4 STATEMENT OF HYPOTHESIS
To carry out this research, the following hypotheses were formulated:-
1. Ho: b1 = o: Non-oil export has no significant impact on the Gross Domestic Product (GDP)
H1: b1 ≠o: Non-oil export has a significant impact on the Gross Domestic product (GDP)
2. H1: b1 = o: Government policies has no significant impact in boosting the non-oil sector of the Economy
H1: b1 ≠o: Government policies have a significant impact in boosting the non-oil sector of the economy.
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ABSRACT - [ Total Page(s): 1 ]The study investigated the impact of non-oil exports on Nigerian economy during the period of 1986-2010. This study was carried out against the background of the crucial role non-oil export can play as an alternative source of revenue apart from crude oil exports. To achieve this objective, multiple regressions were used in analyzing the data. The empirical result shows that non-oil export is statistically significant to Nigeria economic growth. On the other hand, Government Expenditure (GEX) wa ... Continue reading---
