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A multi-sectoral balance of payments constrained growth approach with intermediate imports: The case of Nigeria

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  • Civcir, Irfan
  • Panshak, Yohanna
  • Ozdeser, Huseyin

Abstract

This study seeks to ascertain whether the Multi-Sectoral Balance of Payments Constrained Growth model is suitable to explain Nigeria's growth experience from 1981 to 2018. The paper explicitly incorporates the effects of intermediate imports and relative prices into the analysis. We employ the autoregressive distributed lag econometric procedure for the analysis. The outcome of the study shows that the Multi-Sectoral Balance of Payments Constrained Growth model correctly predicts Nigeria's growth path. It was found that manufactured export is one of the main determinants of the intermediate import demand function. Considerable reliance on this type of import to produce final exports could reduce the gains from trade, thus adversely affecting the GDP growth of the economy compatible with the BoP constrained growth model in the long run.

Suggested Citation

  • Civcir, Irfan & Panshak, Yohanna & Ozdeser, Huseyin, 2021. "A multi-sectoral balance of payments constrained growth approach with intermediate imports: The case of Nigeria," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 240-250.
    • Handle: RePEc:eee:streco:v:56:y:2021:i:c:p:240-250
    DOI: 10.1016/j.strueco.2020.12.002
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    Cited by:

    1. F.N. Chimphamba & M.K. Wilson, 2022. "The balance-of-payments-constrained growth model for Malawi: Evidence from the bounds testing approach," Journal of Economic Policy and Management Issues, JEPMI, vol. 1(1), pages 50-61.
    2. Bölükbaşı, Halime & Civcir, Irfan, 2024. "Imported Inputs, Balance of Payments and Economic Growth: a model and a test on the case of Turkey," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 319-332.

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