Title:
REVISITING THE EXPORT LED GROWTH HYPOTHESIS (ELGH) FOR NIGERIA: A COINTEGRATION AND CAUSALITY APPROACH

Authors:
Johnson Atan (Ph.D) , Felix Obioesio

Volume - 2 Issue - 3, Pages - 2675-2694

Abstract:
The basic theorizing of the ELGH is that countries can record significant levels of growth if there could be expansion in the export. However, the empirical evidence for the ELGH is mixed and inconclusive. In this paper we re-examine the ELGH for Nigeria. The paper utilizes time series data for the period 1963 to 2013. Applying the framework of cointegration and causality, the following findings were made. First is that manufacturing export has strong positive long run impact on growth, in contrast the primary product component generates negative impacts on growth. Similarly, the Granger causality test result also supports the ELGH for the case of manufacturing product. On the overall the estimation result conforms to the prediction of the ELGH while at the same time points out the differentiated impacts of these two components of exports on growth. In view of this result we recommend that economic policy reforms particularly should be aimed at designing mechanisms to replace primary product export dependence with manufacturing export promotion through intensified economic diversification

Cite this Article:

[Atan, Johnson, and Felix Obioesio. "REVISITING THE EXPORT LED GROWTH HYPOTHESIS (ELGH) FOR NIGERIA: A COINTEGRATION AND CAUSALITY APPROACH." International Journal of Social Science & Economic Research 2.3 (2017): 2675-694.]