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THE EROSION OF AGRICULTURAL EXPORTS IN AN OIL ECONOMY: THE CASE OF NIGERIA
Author(s) -
Okonkwo I. C.
Publication year - 1989
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1989.tb01118.x
Subject(s) - dutch disease , agriculture , revenue , economics , currency , economy , production (economics) , international economics , agricultural economics , international trade , exchange rate , monetary economics , macroeconomics , geography , accounting , archaeology
After several years of oil production and exports with attendant revenue influx, the sector is yet to make a significant impact in Nigeria's economic growth. Contrary to the hopes and expectations that greeted the oil discovery, the non‐oil export sector of the economy, more specifically the agricultural sector, has been declining consistently with further increases in oil exports. This paper is intended to provide an empirical analysis of an aspect of structural change that has taken place in the Nigerian economy. The hypothesis investigated is that an increase in oil exports results in higher relative prices on non‐tradeable to tradeable goods and an appreciation of the domestic currency, hence a loss of the competitiveness of the agricultural export sector in the international market. This phenomenon, popularly known as the ‘Dutch disease’, has been vigorously discussed in the United Kingdom, Norway and the Netherlands, has also received much attention from Australian economists in relation to minerals.