The Impact of Natural Resource Abundance on Economic Growth in Nigeria: A Look at History for the Sake of Future
Abstract
One of the most disturbing characteristics of modern economic growth history is that
economics that are well-endowed with natural resources have tended to grow slower
than economies not well endowed with natural resources. While economic historians
and development economists have been puzzled over the addity of resource-poor
countries outperforming the resource-rich ones in their living standards, this study
examines the impact of natural resource dependency on economic growth in Nigeria
within the framework of autoregressive methodology. Exploiting a time series data for
the period 1970 – 2014, the study found the speed of adjustment (1 - ) at which per
capita income returns to its steady state equilibrium position to be about 39 percent
after it wonders away within two years and that natural resource dependency has not
significantly enhance economic growth in Nigeria. Based on this finding, it is
recommended that sustainable growth of income per capita can be achieved by
initiating appropriate macroeconomic policies that are aimed at improving the efficiency
and effectiveness of natural resource exploitation in the economy, and a revision of
fiscal and budgeting systems.
Downloads
Author(s) and co-author(s) jointly and severally represent and warrant that the Article is original with the author(s) and does not infringe any copyright or violate any other right of any third parties, and that the Article has not been published elsewhere. Author(s) agree to the terms that the IJRDO Journal will have the full right to remove the published article on any misconduct found in the published article.
