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Nigerian Oil and Exchange Rates: Indicators of ‘Dutch Disease’
Author(s) -
Struthers John J.
Publication year - 1990
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/j.1467-7660.1990.tb00379.x
Subject(s) - dutch disease , exchange rate , revenue , agriculture , context (archaeology) , manufacturing sector , economics , investment (military) , government revenue , goods and services , government (linguistics) , business , agricultural economics , economy , international economics , monetary economics , geography , finance , political science , law , linguistics , philosophy , archaeology , politics
This article assesses the impact of expanding oil revenues on non‐oil sectors of the Nigerian economy from 1960 to 1985/6. Emphasis is placed on the effects of exchange rate appreciation during the 1970s on the agricultural, manufacturing and non‐traded goods sectors. The analysis is conducted within a Dutch disease context. Two main conclusions are that the decline of Nigerian agriculture during these years can be attributed to a combination of low real producer prices and insufficient government investment, as well as the overvalued Nigerian naira; and that the high real exchange rate may have benefited the manufacturing sector.