Oil Exploitation and Agricultural Commodity Export in Nigeria: An Empirical Evaluation of the Extent and Impact of the Dutch Disease

IOSR - Journal of Humanities and Social Sciences, 14(1), 1-9, 2013

9 Pages Posted: 11 Jan 2019

See all articles by Innocent C. Ogbonna

Innocent C. Ogbonna

Renaissance University, Enugu

Nkechinyere R. Uwajumogu

Federal University Ndufu-Alike, Ikwo

Ebele Nwokoye

Nnamdi Azikiwe University - Department of Economics

Godwin Chijioke

Renaissance University, Enugu

Date Written: August 1, 2013

Abstract

The study examined the impact of crude oil discovery, exploitation and exportation on the agricultural commodity export (AGO) in Nigeria in the period 1970-2011. Specifically, the study sought to evaluate how the discovery and exportation of crude oil has impacted on the production and export of agricultural output. Annual time series data sourced mainly from the Central Bank of Nigeria (CBN) statistical bulletins for various years were analyzed using co-integration and vector error correction model in a bid to delineate the long run relationship between (AGO) and oil export (OX). Our results show that in the long run, Dutch disease (DD) is present in Nigeria. A 1% increase in OX will depress AGO by 16%, that is, the more Nigeria produces and exports oil, the lower the output and less competitive the traditional tradable sector (AGO) becomes. The paper recommends that policy makers should make considerable investments in developing other economic sectors, re-channel the extra revenue from oil to accumulate income-producing foreign assets, and come up with a number of tax and import duty waivers, import substitution and diversification measures in order to boost productivity in the “lagging” traditional tradable sector and develop other agro-allied industries to improve the value chain.

Keywords: Agricultural Export, Booming Oil Sector, Dutch Disease, Lagging Tradable Sector, Nigerian Economy

Suggested Citation

Ogbonna, Innocent C. and Uwajumogu, Nkechinyere R. and Nwokoye (nee Nwabude), Ebele and Chijioke, Godwin, Oil Exploitation and Agricultural Commodity Export in Nigeria: An Empirical Evaluation of the Extent and Impact of the Dutch Disease (August 1, 2013). IOSR - Journal of Humanities and Social Sciences, 14(1), 1-9, 2013. Available at SSRN: https://ssrn.com/abstract=3306603

Innocent C. Ogbonna

Renaissance University, Enugu

Ugbawka, Enugu 01183
Nigeria

Nkechinyere R. Uwajumogu

Federal University Ndufu-Alike, Ikwo

Ikwo
Nigeria

Ebele Nwokoye (nee Nwabude) (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

HOME PAGE: http://www.unizik.edu.ng/profile/nwokoyees

Godwin Chijioke

Renaissance University, Enugu

Ugbawka, Enugu 01183
Nigeria

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
67
PlumX Metrics