ASYMMETRIC RESPONSE OF NON-OIL EXPORT TO ECONOMIC DIVERSIFICATION IN NIGERIA

Abstract

Economic diversification remains a challenge for most developing countries
and is arguably greatest for countries with the lowest incomes as well as for
those whose economies are small, landlocked and/or dominated by primary
commodity dependence. This study examines the asymmetric response of non-
oil export on economic diversification in Nigeria for the period of 1985-2021.
The empirical evidence from non-linear Auto-Regressive Distributive lag
(NARDL) model shows that both agricultural export and mineral export have
positive and statistically significant effect on economic diversification in
Nigeria. The Wald test reveals the existence of asymmetry response in the long-
run of non-oil export in the Nigeria. Furthermore, the growth rate is more
influenced by positive change than the negative change in the non-oil export.
The study recommends that Nigerian government should enhance the
productivity and output of non–oil commodities as well as providing markets for
these commodities. Diversification policy should be adopted in the economy and
ensure maximum contributions from all faces of the subsectors in the economy
in order to achieve economic diversification in Nigeria.