Impact Of Export Earnings On Economic Growth In Nigeria:- Emeka Victor C

ABSTRACT

( This study examined impact ofexport trading on economic growth in Nigeria within the sample period of1981 to 2017. The broad objective ofthe study was to investigate the impact ofexport trading on economic growth. The methodology ofthe study was the co-integration and error correction approach. The variables used in the study include; exchange rate (EXCH), oil export (OEXP), and non-oil export (NOEXP) as the explanatory variables while real gross domestic product (RGDP) was employed as the dependent variable. The Data on these variables were sourcedfrom the Central Bank ofNigeria (CBN) statistical bulletin volume 29, 2018. The unit root result revealed that none ofthe variables were stationary at level, but at first and second differencing, all the variables became stationary. The Johansen Cointegration test revealed that there is a long run relationship among the variables employed in the study. Exchange rate (EXCH), oil export (OEXP) and non-oil export (NOEXP) all revealed a significant and positive relationship on economic growth. The ECM was used to correct the problems of Cointegration in the model. The R2 shows that 95% of the changes in the dependent variable, are as a result ofthe changes in the explanatory variable. The result ofthe Breusch-Godfrey Serial Correlation LM Test shows that there is no serial correlation in the model. Therefore, the research recommends that; to improve the living standard of the populace, emphasis should not be directed only to export sector ofthe economy, but should be far reaching as the growth in the economy also has the potential to drive the export sector of the economy. Keywords: Exchange rate, Oil export, non-oil export, CBN, RGDP