CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Any nation of the world that wants to grow economically, exports of goods and services is one major significant sources to attain this feat and as well the balance of payments (Daoudand Basha, 2015). Normally, it has been debated that export activities are capable of stimulating economic growth in varieties of ways owing to larger international markets (Vincent, 2017). According to Lam (2016), export of goods and services has been seen strategy aimed at economic development by many nations, particularly the developing nations such as Ghana, Kenya, Nigeria among others. Even through practical proof supporting export led economic development may not be global, it is broadly accepted that a keen management of openness to trade through export could be a strategy for fast economy growth (Serena, Noon and Abdullah, 2016).
The nation Nigeria, being a developing one has been struggling for decades to attaining developmental feat, not only political and socially, but economic wise (Kromtit, et al., 2017). Agricultural produce has been the major export in Nigeria in 1960s until in 1970s when oil was found and became the main stay of export and foreign exchange earners of the economy (Duru and Ehidiamhen, 2018). From 1970s till date, crude oil has been the major driver of the Nigerian economic owing to the fact that it is the main source of foreign exchange and international trade. However, this mono cultural type of economy makes the nation vulnerable to the impact of oil price shock.
Owing to over depended on oil by the Nigerian economy was seen in the inability of the nation to manage her economy as a result of oil price fall in the international during the Covid 19 which further pushed the economic into recession. Thus, it is worthy of note that export is significance to the survival of a nation economy as well as the composition of export is of principal important (Kromtit, et al., 2017).
Export trade is another channel for achieving economic growth via knowledge, enhanced productivity, competitiveness in the industries, economies of scale as well as technological development. It further improves the income of government etc. Furthermore, export encourages improvements for industries as well as technological advancement (Nyasulu, 2013). Consequently, both advanced and underdeveloped Nations would enhance their export activities through the adoption of new policies which encourages diversification as well as specialization of their exports.
There has been in public debate and various studies on the significant correlation between export and economy development (Abogan et.al 2014; Kalu and Agodi, 2014;Mehrara (2013). To Kalu and Agodi (2014), export is one of the major strategies for economy transformation that can be adopted by developing nations for the achievement of economic growth. Various approaches have been deployed by governments and policy markets of nations to ensure economic growth (Duru&Ehidiamhen, 2018). Furthermore, the need to enhance standard of living of the citizen and to create jobs has led to the introduction of these several economic strategies such as export (Young, 2018). Therefore, this study seeks to investigate the role of exports on economic growth of Nigeria.
1.2 Statement of the Problem
The term economic growth is vital to every nation both the developed and developing ones due to the fact that it entails various factors that significantly impact on the entire nation. According to Omoke and Opuala–Charles(2021), every nation tries to achieve economic growth through various policies and strategies such as increased export. However, the problem with exports is how the government of a nation has formulated policies towards promoting exports. Matthew et al (2021) contended that one of the problems facing nations in export is focusing on a one sector at the detriment of the other sectors. This will result in a nation lagging behind in terms of economic development and face several challenges and problems such as little or no Foreign Direct Investment (FDI), poor standard of living, over dependent of foreign aids among others (Matthew et al., 2021).
For instance, Nigerian export has over depended on oil for the past five decades. Conversely, the non-oil sector of the country not been encouraging despite the large access to market conditions (Ekwunife, et al., 2021). With this current situation, there is little hope that Nigeria will enjoy economic growth with export as the driver of economic growth.
Furthermore, the galloping prices of crude oil in the International market have a significant effect on the Nigeria's export earnings gotten from oil consequently hindering her capacity to push for economic growth in the country. The export trades of Nigeria had continued deteriorate in recent times despite its trade policies as well as incentives. Even with the various confirmations of the existence a correlation between economic growth and export, there empirical researches that have been carried out in Nigeria and some other parts of the earth showing differing outcomes. Theescalating need of the Nigeria government to enhance the lives of their citizens, develop the economy and generate revenue has been of great concern (Badwan and Atta, 2021). This has resulted to the governments at all tiers adopting several methods such as bilateral trade, attraction of Foreign Direct Investment and international trades(Shuaibu et al., 2021). However, there has been public outcry of lack of development and much of capital fights instead of export in the country. Furthermore, Nigeria had been ravaged by the menace of unemployment, insecurity, poverty which is as a result of single cultural economic system that heavily relies on just a sole product for the sustenance of her economy. This is what this research hopes to analyze with the Nigerian situation.
For full e-academic materials on projects, dissertations, theses, assessments, reports, essay etc,
visit our platform https://researchshelf.com/ . You can as well hire a writers, researchers or
private lectures from our platform or email us at theotherwomaninmarriage@gmail.com for more
enquiries.
No comments:
Post a Comment