You have no items in your shopping cart.
ABSTRACT
The study examined the impact of export diversification on balance of payments in Nigeria. Autoregressive Distributed Lags (ARDL) Bounds Testing Approach to co-integration was the econometric technique applied. An alternative methodology, Fully Modified Ordinary Least Squares (FMOLS) was employed to ascertain robustness of results as well as more specifications to different econometric models. Annual time series data of balance of payments and export diversification with three control variables: exchange rate, real gross domestic product and money supply for 1995 through 2017 were utilized for the oil export models, also annual time series data of balance of payments and export diversification with seven control variables: exchange rate, real gross domestic product, terms of trade, trade openness, foreign direct investment, gross capital formation and money supply for 1981 through 2017 were utilized for the non-oil export models. It was found that there was a long-run equilibrium relationship between the balance of payments and export diversification with the other selected macroeconomic control variables. The findings revealed that concentration in oil exports had direct relationship with balance of payments while diversification had indirect relationship with balance of payments.The study therefore recommended that Nigeria should diversify within the oil sector by maintenance of existing and building of refineries; thereby making the products available to ease the pains of Nigerians; conserve foreign exchange for the importation of ‘necessary’ goods and services and exporting of refined products to enhance balance of payments stability in Nigeria.
