Foreign Trade and External Reserves in Nigeria (Published)
This study empirically examined the effect of foreign trade and external reserves in Nigeria. The objectives of the study were to; examine the impact of oil import, non-oil import, oil export, non-oil export and exchange rate on external reserves in Nigeria. Time series data from 1980 to 2019 was collected from CBN statistical bulletin. The study employed the techniques of ADF unit root test, co-integration and Vector Error Correction Model. The results of the estimated model showed that all the time series were stationary at order one. Also, the model depicted by the co-integration result showed that there is a long run equilibrium relationship among the variables. Similarly, the vector error correction result showed that the coefficient of ECM has the hypothesized negative sign and statistically significant at 5% level. Furthermore, the Vector Error Correction result revealed that oil and non-oil exports impacted positively on external reserves although the impact of non-oil export was insignificant while oil imports, non-oil imports and exchange rate had significant negative impact on external reserves in Nigeria. Specifically, oil export, oil imports, non-oil imports and exchange rate were significant at 5 percent. This implies that they impacted significantly on external reserves in Nigeria during the period covered by the study. In addition, the granger causality test revealed that oil export had a uni-directional causal relationship with external reserve while there was a bi-directional relationship between exchange rate and external reserve. Based on these findings, the study recommended amongst others the diversification of the export base of the nation as a possible measure of improving external reserves in Nigeria. Also, the study suggests that importations be discouraged especially for commoditites that can be produced locally. Finally, the study recommends that the CBN as the custodian of Nigeria’s foreign reserves, stabilize the value of local currency taking into cognizance the external shocks that stem from exchange rate volatilities.
The Post-cold War international regime has accentuated the convergence of sovereign states as a desideratum for their continued relevance within the locus of contemporary global political economy. Hence, the relative gains derived by a particular state are largely dependent on the structure, content and effective implementation of its economic diplomacy. Nigeria’s economic diplomacy is fundamentally aimed at the diversification of its economic base, expansion of its international market, attraction of foreign capital and the management of debt. Essentially, this paper examined how Nigeria’s economic diplomatic engagements had engendered or otherwise undermined its development imperatives. Using the qualitative descriptive method of data analysis, the paper implicated the management of Nigeria’s external economic relations on the prevailing crisis of development within the country. Consequently, it recommended the active involvement of relevant bodies especially the Federal Ministry of Trade, Industry and Investment, Ministry of National Planning, the National Planning Commission and the Debt Management Office in the formulation and implementation of appropriate domestic policies that would make both manufactured and semi-manufactured products more competitive in the global market; making the economy more attractive to local investors first as the most effective strategy for attracting foreign capital; and the efficient management of debt in order to ensure national development.
This paper examines and ascertains how the contributions of Richard Cantillon have been relevant to the development of the Nigerian economy. In doing this, the economic thoughts of Richard Cantillon were critically examined in order to see how these issues raised have been affecting the Nigerian economy. Political economy and descriptive approaches were used to x-ray the relevance of Richard CantillonвЂ™s contributions to NigeriaвЂ™s development. His contributions among others include: the nature of wealth, social and economic organization of people, wages of labour, theory of values, population problems and the use of gold and silver, barter, prices, circulation of money, interest, foreign trade, foreign exchange and banking and credit. The findings of the study revealed that these contributions are of great relevance to economic development in generally, but have not specifically contributed to the development of Nigerian economy. This is seen in the areas of low per capita income, negative attitude to work, inevitable population problems, persistent increase in prices, high lending interest rate, unfavourable terms of trade, incessant and diversion of public funds into private business rather than the real economy, and without doubt Nigeria has no place in foreign trade. Based on the foregoing, it was concluded that all these ugly trends accounted for the reason why economic development is not at sight in Nigeria. Thus, it was recommended that the monetary authorities should initiate sound monetary policies. Also, these monetary policies should be complemented with effective fiscal policies in order to put the Nigerian economy back to path of economic growth and development.