Oil Exportation and Economic Growth in Nigeria

Abstract

This paper examines the economic impact of oil exportation on Nigerian economy from 1970 – 2012. The objective of the study is to look at the impact of oil exportation on the economic growth in Nigeria. Secondary data were collected based on the model used in the research work and unit root test was conducted on the data to test their stationary, after which we perform co-integration test to analyze the long run relationship among the variables and VECM and impulse response was also employed for the analysis. The result obtained from our empirical analysis shows that there exist a long run relationship between the dependent variable and the explanatory variables. The conclusion of the study is that Exports should not be promoted at all cost, but rather the utilization and allocation of the physical resources and labor complement of the country in the most advantageous combination as between production for the local and foreign markets and that diversification should be seen as an economic management strategy aimed at ensuring stability of incomes.

Keywords: Exportation, Nigeria, VECM, GDP