The essence of this work has been to determine the effect of nonoil export on economic growth in nigeria, during the period of 19862010. Nonoil exports do not contribute to nigerias gross domestic product. Using the augmented production function apf and the endogenous growth model egm, onudugo, ikpe, and anowor 20 examined the impact of nonoil exports on economic growth in nigeria using. Nigerias domestic revenue mobilization has been one of the lowest in the world. Corona virus new blow to economy growth expected to drop from 3. There is a significant relationship between the impact of oil and nonoil revenue in economic growth of nigeria. The performance of the nonoil exports in the past two decades leaves little or nothing to be desired. An investigation of the impact of non oil exports on. Still on,, impact of over dependence on oil revenue on nigeria economic growth 19812016. In carrying out this study, secondary data were collected and empirical analysis was made. Dynamic relationships among nonoil revenue, government.
We also found nonoil revenue to have negative shocks on economic growth while the government spending shock was positive. Oil revenue is indeed an important component of economic growth of the recipient nations. An empirical investigation of oil revenue and economic growth. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. This study therefore, aims to illustrate clearly the impact of oil industry on economic growth performance in nigeria. Adedipe associates limited, victoria island, lagos, nigeria. Chapter one of impact of oil revenue on the economic growth in nigeria project material starts from here. Pdf petroleum revenue and economic growth in nigeria. Federal government recurrent expenditure have no significant effect on economic growth in nigeria. The study employed annual observations from 1980 to 20. This paper tries to examine the impact of non oil export on economic growth in nigeria. Over the last four decades, nigeria s gdp growth rate failed to keep pace with those of more developed economies, reflecting an alltoocommon experience among commodity exporters. Impact of over dependence on oil revenue on economic.
On the basis of the above findings, the study concludes that nigerian economic growth is highly depended on the oil revenue. A lot of literature exists on tax revenue and economic growth of nigeria adereti et al. Contribution of agriculture to economic growth in nigeria1. The relationship between exports, economic growth and development has long been a subject of much interest in development literature. Get free research paper on oil and nonoil export on the economic growth of nigeria 1983 2007project topics and materials in nigeria. Determine the extent which oil revenue impacted on the economic growth in nigeria. Impact of oil revenue on the economic growth in nigeria.
This study aims at achieving the following objectives. The need for federal, states and local governments to generate adequate revenue from other sources. Non oil exports accounted for more than 66% of nigerias total export and contributed immensely to the growth of nigerias economy in the 1960s ogunkola. Investigation of the impact of nonoil revenue on economic growth. The decline in price of oil in recent years has led to a decrease in the funds available for distribution to the three tiers of government in nigeria. Results show that agricultural revenue, manufacturing revenue and interest rate have significant impact on economic growth in nigeria. Therefore, most of the oil rich nations invest the revenue from the oil sector into the non oil sectors for strategic reasons. The oil boom of 1970s brought about a gradual shift from agriculture to crude oil making nigeria to depend heavily on petroleum as a main source of foreign exchange earnings. Both oil and non oil exports have no significant impact on economic growth in nigeria.
The essence of this work has been to determine the effect of non oil export on economic growth in nigeria, during the period of 19862010. Over the last four decades, nigerias gdp growth rate failed to keep pace with those of more developed economies, reflecting an alltoocommon experience among commodity exporters. The impact of federal government expenditure on economic. For example using the current population growth rate, the government could predict the level of consumption the following year and take better decisions that would aid and enhance economic growth. Therefore, government should make efforts in diversifying the economy away from oil in order to encourage the generation of revenue by the non. Both oil and nonoil exports have no significant impact on economic growth in nigeria. Therefore, most of the oilrich nations invest the revenue from the oil sector into the nonoil sectors for strategic reasons.
This is approved for students in accountancy, business, computer science, economics, engineering, arts. Since then, oil has constituted the bulk of public generated revenue, export earnings and foreign exchange reserve obadan, 2012. Non oil revenue has a positive and significant impact on the economic growth in nigeria. Investment, gdp growth, and the size of gdp are all strongly interdependent. Impact of nonoil export on economic growth in nigeria. The exportation of oil in from the first quarter of the 70s shifted the revenue base in favour of oil odusola, 2006, iyoha, 2003. A multivariate regression approach was employed to estimate augmented growth models.
This study a nalyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. Download the full research work in doc editable format. Results from the empirical study revealed a statistical significance of economic. According to the organisation for economic cooperation and development oecds revenue statistics in africa 2019 report, nigerias taxtogross. Looking beyond oil gdp has slowed, driven by lower oil sector growth and a weaker nonoil sector nigerias economy grew by 2. The study examines the significant role of non oil export product on real economic growth which the previous studies might have ignored and the aggregate non oil exports product data used by them might bias their conclusions. There are several literatures by different authors, scholars and researchers on taxation as source of government revenue and its impact on nigeria economy.
Using the augmented production function apf and the endogenous growth model egm, onudugo, ikpe, and anowor 20 examined the impact of non oil exports on economic growth in nigeria using. The result from the test shows that there exists a positive impact of non oil. An empirical investigation of oil revenue and economic. The classical economists like adam smith and david ricardo have argued that international trade is the main source.
Diversification of nonoil export product as a precondition. Regional development a nations comparative status in its region of the world will impact its ability to develop. To achieve this research objective, relevant secondary data were used from the 2012 statistical bulletin of the central bank of nigeria cbn. Nigeria gdp annual growth rate 19822019 data 20202022.
These data were analyzed using the ordinary least squares regression. Mar 27, 2016 the impact of taxation on nigeria economy growth. There is no shortage of empirical and theoretical studies regarding the role of exports in raising the economic growth and development of a country. Introduction in recent time, the international per barrel price of crude oil dropped drastically from about usd 110 from the.
A multivariate regression approach was employed to. This research paper investigates the impact of agriculture on economic growth of nigeria, considering the impact it will have to ensure the achievement of economic growth and recovery, from the devastating effects recession had on the economy from 2016 to the second quarter of 2017. Impact of non oil tax revenue on economic growth of nigeria 1. The impact of oil revenue on the economic growth in nigeria. The impact of nonoil export on economic growth of nigeria. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by. Nweze and edame 2016 and nwanna and eyedayi 2016 found that there is a direct relationship between oil price and economic growth in nigeria such that a. The impact of oil and nonoil exports on the economic growth. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Analysis of the impact of non oil sector on economic growth. Analysis of the impact of oil revenue on the nigerian economy. This study is prompted by fewness of studies on the impact of energy shocks on economic growth of oilexporting countries like nigeria, unlike studies on oilimporting countries olomola and adejumo, 2006. Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. Institutions a nation must be perceived as being politically stable before it can hope to increase investment in its economy education.
Some researchers estimated the effect of tax revenue on the economic development of nigeria using gross domestic product gdp. To find out whether oil export generate revenue in nigerian economy. The export of crude oil now constitutes about 96% of total exports. Examine the longrun relationship between oil revenue and economic growth in nigeria. This study analyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. The study period spans economic cycles for about 66 percent of the life of. This is because it focuses on evaluating the impact of federal government expenditure on economic growth in nigeria. This has had a severely limiting impact on economic growth and creation of an enabling framework for investments. The government of nigeria has used the revenue derived from oil through tax and royalties to carry out development projects in the country iyohu 2000. Evaluation of the contribution of non oil revenue to. Pdf this study is motivated by the need to examine the impact of nonoil export to economic growth in nigeria for the.
Impact of nonoil tax revenue on economic growth in nigeria. D in view department of entrepreneurship and business studies, federal university of technology, minna, niger state nigeria gsm. Abstract the essence of this work has been to determine the effect of nonoil export on economic growth in nigeria, during the period of 19862010. The study concludes that nonoil revenue has the potential to unlock nigerias economic morass an policy recommendations are provided. The study examines the significant role of nonoil export product on real economic growth which the previous studies might have ignored and the aggregate nonoil exports product data used by them might bias their conclusions. This study is prompted by fewness of studies on the impact of energy shocks on economic growth of oil exporting countries like nigeria, unlike studies on oil importing countries olomola and adejumo, 2006. Impact of non oil tax revenue on economic growth of nigeria. Abstract the essence of this work has been to determine the effect of non oil export on economic growth in nigeria, during the period of 19862010. Impact of tax revenue on economic growth in nigeria nwamuo. There is no significant relationship between the impact of oil and nonoil revenue and economic growth of nigeria. Pdf the nexus between oil and nonoil revenue on economic.
The performance of the non oil exports in the past two decades leaves little or nothing to be desired. Investigation of the impact of nonoil revenue on economic. The impact of nonoil revenue on economic growth in nigeria. The impact of non oil export on economic growth of nigeria. In our economy today we are privileged to make use of the advanced world countries products having risen from improved or advanced technologies of the world. Determinants of economic growth in nigeria kazeem b. This study analyses the impact of nonoil tax revenue on economic growth from 1993 to 2012 in nigeria.
The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigerias economic growth between 1980 and 20. Analysis of the impact of non oil sector on economic growth in the period of the 1970s, agriculture was the main stay of the nigerian economy. The study examined the impact of tax revenue on the nigerian economy. To determine whether nonoil exports contribute to nigerias gross domestic product. The impact of oil on nigerias economic policy formulation by biodun adedipe, ph. What is the impactof oil and nonoil revenue in economic growth of nigeria. In these studies, researchers used economic development and economic growth interchangeably. The economy is now on a slow track for the first half 2015 with around 3. To examine the impact of oil and nonoil revenue on economic growth of nigeria.
Since then, oil has constituted the bulk of public generated revenue, export earnings and. Data were sourced from central bank statistical bulletin and extracted through desk. Ram 1986 examined the impact of government expenditure on growth with. Pdf the impact of nonoil export on the nigerian economy. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by gross domestic product gdp, in nigeria.
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