Economic Growth Paradox in Nigeria: A Perspective from Natural Resource Wealth Time Series Analysis for the Period 1980 - 2013

Abstract

This thesis empirically examines the paradox of economic growth in Nigeria with a viewpoint from natural resource wealth. The question involved in this study is that whether natural resource wealth has a positive impact on economic growth in Nigeria or not. The economy of Nigeria is observed to be growing on paper but deplorably, poverty and unemployment is on a progressive increase in reality. The study uses the endogenous growth theory (AK Model) in terms of how resource wealth can influence economic growth. It exploits time series analysis (Unit Root and Co-integration) techniques to test for the existence of a relationship. It also applies the Error Correction Mechanism (ECM) in testing for the existence of a relationship as it captures the short-run dynamics and provides a measure to resolve the behaviour of the series in the short run with its performance in the long run. The result confirms that that natural resource (Oilrent and Agriculture) based growth strategy will not lead to sustained economic growth for the Nigerian economy. Thus it was recommended that Nigeria should follow an industrial growth strategy with a vibrant real sector that would result in the diversification of the economy with the aim of addressing and tackle the issue of wide spread corruption and mismanagement of public funds in all respective areas and sectors of its economy. The involvement of this study lies in the reality that it provides additional confirmation on the ongoing debate of resource wealth on the economic growth development within a specific country.

Date of Award	2016
Original language	American English
Awarding Institution	Eastern Illinois University
Supervisor	Ahmed Abou-Zaid (Supervisor)