Impact of Oil Price Fluctuations and Economic Growth: Insights from Nigeria
- Post by: airjournals
- February 21, 2023
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This study was conducted to examine the impact of Oil Price Fluctuations and Economic Growth: Insights from Nigeria”. The study aims to thoroughly examine how variations in oil prices affect Nigeria’s long-term economic growth and how they affect variables under discourse like inflation rate, unemployment rate, human capital index, and gross domestic product (GDP). The research questions and hypothesis were formulated in the same direction. The Autoregressive Distributive Lag model was utilized so that the models that were under evaluation could be estimated. The data came from the annual statistical Bulletin of the Central Bank of Nigeria, the Nigeria Bureau of Statistics, and the OPEC database that were collected between 2002 and 2019 for the period of 17years. The price of oil is an independent variable, in contrast to other economic indicators such as GDP, the Human Development Index, the unemployment rate, and inflation rate, all of which serve as replacements for economic growth and are dependent factors. The price of oil alone has a direct and significant influence on the expansion of Nigeria’s economy, as measured by GDP, regardless of other variables being understudied. The report makes several recommendations, one of which is that the government should establish vertical and horizontal links in the oil sector for economic diversification, appropriate utilization of necessities, and beneficial investment in the beneficial development of infrastructure.
Keywords: Economic Growth; Human Development Index; Nigeria