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Do oil and non-oil balance of trade impact similarly on Malaysia and Nigeria GDP?

Ugbede, Onalo and Mohd Diah, Mohd Lizam and Ramin, Ahmad Kaseri and Makoji, Stephen Robert (2013) Do oil and non-oil balance of trade impact similarly on Malaysia and Nigeria GDP? In: International Conference on Economic, Finance and Management Outlooks (ICEFMO 2013), 05-06 October 2013, Pearl Hotel, Kuala Lumpur.


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Despite the fact that there is a close link between GDP and the balance of trade, limited studies focussed on the oil and non-oil dichotomised effects of net exports or balance of trade on the GDP. This study therefore, painstakingly investigates specifically the impact of oil and non-oil balance of trade on Malaysia and Nigeria GDP. Data were collected for period 1971-2010 and regression equations defining oil, non-oil and total balance of trade as independent variables and GDP as dependent variable is employed to analyse data. Augmented Dickey-Fuller Tests equation was employed to perform unit root tests for stationary and cointegration tests. From the analysis, oil, nonoil and total balance of trade contributes immensely to the Malaysia GDP. Contrary, only the oil and total balance of trade impact positively on the Nigeria GDP. The Nigeria non-oil balance of trade on the whole has performed below expectation thereby impacting adversely on the Nigeria GDP. Though Nigeria total balance of trade show better results, sectoral impact of the non-oil sector is much more significant a determinant of the quality of a country’s GDP. This study therefore recommends that Nigeria should enhance her export promotion strategies and diversify her economy far away from crude oil.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: oil; non-oil; total balance of trades; GDP; exports; imports
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Technology Management and Business > Department of Real Estate Management
Depositing User: Normajihan Abd. Rahman
Date Deposited: 10 Dec 2013 08:29
Last Modified: 21 Jan 2015 07:31
URI: http://eprints.uthm.edu.my/id/eprint/4587
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