ARDL, Diversiﬁcation, Macroeconomics, Trade
This study seeks to examine the eﬀects of trade diversiﬁcation on macroeconomic performance in Nigeria. To achieve this, the study employs bound test of ARDL to determine the existence of cointegration between trade diversiﬁcation and key macroeconomic variables. We further estimate the short-run and long-run eﬀects of Intensive and Extensive trade diversiﬁcation on Economic growth and exchange rate movements. The results from bound tests conﬁrm co-integration between trade diversiﬁcation and economic growth on one hand and trade diversiﬁcation and exchange rate movements on the other hand. Similarly, the results from our estimations show that trade diversiﬁcation can propel economic growth in the country. Also, the trade diversiﬁcation can reduce movements in exchange rate especially extensive diversiﬁcation thus preventing it from substantial movement that can derail this important variable from its long run equilibrium. The study recommends that policy makers should pursue vigorously both intensive and extensive trade diversiﬁcation to propel economic growth and guarantee stable exchange rate for the Nigerian currency.
CBN Journal of Applied Statistics
Oyelami, Lukman O. and Alege, Philip O.
"Macroeconomic Implications of Trade Diversiﬁcation in Nigeria,"
CBN Journal of Applied Statistics (JAS): Vol. 9:
1, Article 2.
Available at: https://dc.cbn.gov.ng/jas/vol9/iss1/2