ADSU International Journal of Applied Economics, Finance and Management

Impact Of Export Development Policies On Performance Of Non-Oil Exports In Nigeria

Abstract

This study investigate the impact of export development policy on the performance of non-oil exports in Nigeria from 1986 to 2015 using secondary data in form of time series. The study used unrestricted Vector Auto Regression (VAR), granger causality and Auto Regressive Distributed Lag (ARDL) techniques in the data analysis. The study also uses impulse response function and variance decomposition. Unit root test was conducted; the results indicate that non-oil export (NOE), Export Expansion Grant (EEG), Gross Domestic Product (GDP) and trade openness are found to be I(1) variables, while interest rate (INTR) is I(0) variables. The ARDL bound test result reveals long-run equilibrium relationship between the variables. The error correction framework was correctly signed and statistically significant. The impulse response function and variance decomposition reveal a mixed of both positive and negative shocks from non-oil export(NOE), Export Expansion Grant(EEG), interest rate(INTR), Gross Domestic Product(GDP) and trade openness(OPEN) based on past and current values. Base on Vector Auto regression(VAR) result, the study concluded that, increase in Export Expansion Grant, Gross Domestic Product and Degree of Trade Openness and decrease in Interest Rate are ways of improving the performance of Non-oil Export. The study recommends that, government should enforce existing non-oil export policies toward re-sustaining the failing non-oil export industry. Also, government should improve on exports incentives, providing sufficient infrastructure as no economy can grow without adequate infrastructure.