The Impact of Dutch Disease: The Case of Nigeria

Abstract

Nigeria, over the years, has been showing a rapid appreciation of the domestic currency, a rise in real wages and the service sector and a slow-down in the industrial production which are all signs of presence of Dutch disease which predicts that a country with large natural resource rents may experience a de-industrialization and a lower long term economic growth. This paper analyses the impact of Dutch disease in Nigeria Ordinary Least square method, Two-Stage Least Square and Autoregressive Distributed Lag with a system of equation from 1981 to 2017 and found that the real wage rate emphasizes on the labour supply in the economy which checks put one of the assumptions, there is also a decline in the manufacturing sector over the years. Recommendations to Nigeria will, therefore, be to provide more funds to the agricultural sector by giving out loans to interested parties, privatization of the downstream production of oil and diversification of the economy.

Date of Award	2019
Original language	American English
Awarding Institution	Eastern Illinois University
Supervisor	Ahmed Abou-Zaid (Supervisor)