Authors: O. Olayinka Akinlo
Addresses: Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
Abstract: The paper examines the relationship between export, economic growth and investment (domestic and foreign) for Nigeria over the period 1970–2006 using Vector Autoregressive (VAR) technique and variance decomposition analysis. The results from the cointegration analysis suggest that there is a long-run equilibrium relationship. Economic growth and Foreign Direct Investment (FDI) have small, and not a statistically significant effect, on export. In addition, the results show that innovations in each variable are mainly due to own innovation. The results show no evidence of causality running from economic growth to export. The paper demonstrates the fact that in oil-rich economies like Nigeria economic growth and investment do not significantly affect export performance.
Keywords: exports; foreign direct investment; economic growth; error-correction; Nigeria; export performance; domestic investment; VAR; vector autoregression; variance decomposition analysis; cointegration analysis; long-run equilibrium; equilibrium relationships; innovation; causality; oil-rich economies; business; emerging markets.
International Journal of Business and Emerging Markets, 2011 Vol.3 No.3, pp.251 - 269
Published online: 27 Jun 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article