The Impact of Oil Export on Economic Growth in Nigeria

Filed in Current Projects, Economics Project Topic by on October 20, 2020

The Impact of Oil Export on Economic Growth in Nigeria

ABSTRACT

The crude oil industry is a major sustaining sector of the Nigeria economy, and should not be neglected because it either directly or indirectly aids the productivity of the sectors

The study examines the impact of oil export on the Economic growth in Nigeria, from 1981 – 2014. the objectives of the study are; to examine the effect of oil export on GDP.  And  To examine the impact of increase in the oil exports trend from 2001 on the Nigerian  Economy.

Thus, economists observed that the variables have a unit root at levels. This study with the aid of OLS and co-integration method used shows the relevance of oil export to the growth of the economy.

The findings confirm that there is a positive and significant relationship between oil export and Economic Growth.

Following the findings, Since oil exports were found to have a positive and significant relationship with GDP, it is recommended that the government should build more equipped refineries and reduce the cost of refining crude oil.

INTRODUCTION

Exports are a function of international trade whereby goods produced in one country for future sale. Exports are of two type which includes;

Visible and Invisible export. Visible export are tangible commodities and can be seen and touched example palm oil, cotton and rubber while Invisible export are intangible commodities that cannot be seen and touched such as services.

Crude oil is naturally occurring, unrefined petroleum products composed of hydrocarbon deposits and other organic materials.

The raw material crude oil can be refined to produce useable products such as gasoline, diesel and various forms of petrochemicals.

Crude oil was made naturally from the decaying plants and animals living in ancient seas million of year ago. Crude oil is dark in colour, viscous and foul smelling liquid.

Crude oil can be used for petrol example;  for aeroplane, motor vehicle etc .Kerosene which serves as fuel for jet aircraft and for oil field for domestic heating, diesel oil for generator and waxes for making Vaseline.

REFERENCE

Adelman, M.A. (1976), “The World Oil Cartel”, Quarterly Review of Economics and business16, April, 3-11.

Adedipe . B. (2004),”The  impact of oil on Nigeria”s Economic policy formulation:Kadmon preting press

Afolabi Khadijat (2011), “The oil export and Economic growth:Quarterly Review of Economics and business 16, April, 3-11.

Ahuja .H. L (2014). Economic growth and development.India .S. chand publications.

Akanni, O.P (2004) Oil Wealth and Economic Growth in Oil Exporting African countries. AERC Research paper 170.

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