Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa

Finance & Economics Review

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Title Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa
 
Creator Ogunewe, Nwanneka Cynthia
Ananwude, Amalachukwu
Nduka, Dr Joseph Afamefuna
 
Subject Non-Oil Exports; Manufacturing Sector; Nigeria
 
Description Purpose: This paper presents an analysis of the effect of non-oil exports on the manufacturing sector growth in an oil-rich country in Africa – Nigeria from 1986 to 2018. In clear terms, we evaluated how manufacturing sector capacity utilization is affected by non-oil exports.
Methods: The Ordinary Least Square (OLS) estimation technique was applied in estimating the model and was lagged by two years. The long-run relationship was determined using the traditional Johansen co-integration methodology. How manufacturing sector growth is affected by non-oil exports was evaluated using the Granger Causality technique. The Augmented Dicky-Fuller (ADF) and Phillips-Perron tests were applied to check the stationarity properties of the data.
Results: The growth in the manufacturing sector in Nigeria has not been significantly affected by non-oil export despite the various non-oil export promotion strategies initiated by the government.
Implication: A major implication of the finding is that the cost and access to financial services for non-oil exporters should be reduced or relaxed by the Central Bank of Nigeria. High-interest rates charged by commercial banks and little disbursement characterized by the volume of commercial banks credit affect manufacturing firms concerning acquiring modern plants and machinery which results in a poor quality of non-oil exports.
 
Publisher Research & Innovation Initiative
 
Date 2020-11-23
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://riiopenjournals.com/index.php/finance-economics-review/article/view/187
10.38157/finance-economics-review.v2i4.187
 
Source Finance & Economics Review; Vol 2 No 4 (2020): Finance & Economics Review; 1-11
2690-4063
10.38157/finance-economics-review.v2i4
 
Language eng
 
Relation https://riiopenjournals.com/index.php/finance-economics-review/article/view/187/93
 
Rights Copyright (c) 2020 Nwanneka Cynthia Ogunewe, Amalachukwu Ananwude, Dr Joseph Afamefuna Nduka
http://creativecommons.org/licenses/by-nc-nd/4.0
 

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