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Macroeconomic Effects of Export Demand in Nigeria

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  • Bolaji Adesola Adesoye

    (University of Ibadan)

Abstract

This study examines the macroeconomic effects of aggregate export demand in Nigeria using annual time series data between 1970 and 2013. The paper made use of the ordinary least square method to analyse the long-run relationship for the period under study. The empirical results confirm that there exists a unique and significant long-run equilibrium relationship among export volume, world income, crude oil price, domestic output, exchange rate and cost of doing business. The estimated results show that domestic income has the highest elasticity, followed by world’s output and cost of doing business, which all report positive relations. Other macroeconomic factors reported negative relationship with aggregate export volume. Thus, an important policy implication of our findings is that stabilizing Nigeria’s export earnings potential by counteracting the external factors that influence adversely the Nigerian exports such as crude oil price and cost of doing business.

Suggested Citation

  • Bolaji Adesola Adesoye, 2017. "Macroeconomic Effects of Export Demand in Nigeria," EuroEconomica, Danubius University of Galati, issue 1(36), pages 122-130, May.
    • Handle: RePEc:dug:journl:y:2017:i:1:p:122-130
    as

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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/3837/4007
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    References listed on IDEAS

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