EXPORT PROMOTION POLICY & ECONOMIC GROWTH IN NIGERIA (1970-2014)
ABSTRACT
A lot of publication had been made in both our newspaper and financial institutions journals on export promotion policy and economic growth in Nigeria. Export promotion policy is a deliberate government policy undertaken to encourage and boast the productionof commodities for export. This is meant to diversify the export base that led to favourable Economic Growth.Primarily, data were collected from statistical bulletin (CBN) and hypothesis formulated. It was discovered that export promotion policy has impact on Economic Growth. Using the chi-square method @ 0.05 4 degree of freedom, the infrastructure bears a negative relationship with the GDP and credit from commercial bank and tariffs havepositively affected economic growth in Nigeria. This was supported by their t-statistics which are all significant.Based on the above, the following recommendations are made, the government should enforce non-oil exportpolicies towards resuscitating the failing non-oil export industry, improve on export incentives andinfrastructures, review of policies and practices that are not favourable to the exporters in the country.
CHAPTER ONE
Introduction
- Background to the study
- Statement of the problem
- Objectives of the study
- Research question
- Statement of hypothesis
- Significance of the study
- Scope and limitation of the study
- Operational definition of key terms
CHAPTER TWO
Literature review and theoretical frame work
2.1 Conceptual clarification
2.2 Export promotion initiatives in Nigeria
2.3 Export promotion policy in Nigeria
2.4 Experience from Nigeria’s export promotion policy
2.5 lessons from Nigerian export promotion policy
2.6 International trade policies
2.7 Macro marketing policies
2.8 Brief history of Nigeria export promotion council
2.9 Review of empirical studies
2.10 Gap in the literature review
CHAPTER THREE
Methodology
For a researcher using primary data, chapter three should be presented thus:
3.0 Introduction
3.1 Population of the study
3.2 Source and methods of data collection
3.3 Validation of Research instruments
3.4 Sample of the study and sampling technique
3.5 Statistical method used for data presentation and analysis
3.6 Limitation of the methodology
CHAPTER FOUR
Data Presentation, Analysis and Interpretation
4.0 Introduction
4.1Data Presentation of questionnaires to respondents
4.2 Hypotheses testing
CHAPTER FIVE
4.3 Interpretation of Results
4.4 Discussion of the findings
CHAPTER FIVE
Summary, Conclusion and Recommendations
5.0 Summary of findings
5.1 Recommendations
5.2 Conclusion
REFERENCE
(Refer to your lecture notes on referencing for correct APA referencing style)
APPENDIX
● Letter Heading
● Questionnaire
●Working of the Chi-Square
●Chi-Square Table
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Exports have long played a role in the analysis of regional economies, primarily through the concept of the economic base. The need to export is predicated on solely economic reasons.
According to Miloslavsky and Shatz (2006), much of the early thinking on exports in economic development was brought together in series of articles by Richard B. Andrews in the 1980s. In the first article (Andrews, 1953), he stated the basic role of export as: “There is a fairly general consensus, that the economic base refers to those activities of an urban community which export goods and services to points outside the economic confines of the community or which market their goods and services to persons who come from outside the community’s economic boundaries. The base activities can be considered the wage earners of the community family. Without them, or if they decline in earning power, the economic health of the community suffers accordingly (p. 16).
Export promotion is a deliberate government policy undertaken to encourage and boast the production of commodities for export. This is meant to diversify the export base and led to a more favourable economic
Growth (GDP). (Dibie 2013). Economic growth (GDP) depends on the export strategies, which aimed atencouraging and assisting exporters to increase and diversify the total value of non-oil exports. These strategies are designed to address the major problem of supply, demand, and price competitiveness of Nigeria’s export.
Some of these strategies are Duty Credit Certificate (N-DCC), Duty Drawback Scheme and Duty DrawbackFacilities, which provide refunds of duties/ surcharges of raw materials use for manufacturing of products, others include, Trade Liberalization Scheme, Export Development Fund Scheme, Export Expansion Grant(EEG) Scheme and Free Zone law for export processing zone. (Oyeide 2012).
Non-oil export diversification based in two categories, the Agricultural sector, which has suffered from years ofmismanagement, inconsistent and poor government policies and the lack of basic infrastructure. This made thesector accounts for over 26.8% of GDP in recent years. The failure of agriculture was due to the increase inNigeria population and the oil boom of the 1970’s that led Nigeria to neglect its strong agricultural andmanufacturing bases in favour of an unhealthy dependence on crude oil. (Pius 2012). The dominance of oilexport not only led to the neglect of the non-oil export productive base, but also brought about an unprecedentedexpansion in the volume of import of various categories by both the public and private sector. Agriculture andmanufacturing are parts of non-oil export sectors that have suffered from mismanagement, inconsistent and poorgovernment policies and the lack of basic infrastructure, obsolete varieties and land tenure system which madethe sector accounts for over 26.8% of GDP in recent years.
Economic growth with poor level of technology and, capital formation, inadequate utilization human resource,natural resources, are challenges that hinder growth. (Eyiuhe 2010). Inadequate infrastructure would lead topoor provision of a good communication system, electricity, water supply and poor transportation network. (Pius 2007). The availability of credit from commercial bank to help industrial and other non-oil sectors are not madeavailable due bank requirements Polices. This really affects the non-oil exports. (Okafor 2003). Tariffs systemaffects the locally made goods for exports due to high customs and excises duties. This discourages productionof such commodities for export and causes prices to rise. (Pius 2001.)These challenges faced by industrial sector are inconsistent of government policies, a collapse of basicinfrastructure tariff system, and non-availability of credits. Non-oil export strategies is designed to increaseforeign exchange earnings, improved balance of payment position, creates employment and development ofexport oriented industries in the manufacturing sector and agricultural sector and improves government revenue.(Nwachukwu 2014).
1.2 STATEMENT OF THE PROBLEM
It has been established in the literature that export promotion is an engine of growth. It increases foreign exchange earnings, improves balance of payment position, creates employment and development of export oriented industries in the manufacturing sector and improves government revenue through taxes and tariffs. However,Journal of Economics and before these benefits can be fully realized, the structure and direction of these exports must be carefully tailored such that the economy will not depend on only one sector for the supply of needed foreign exchange. The dominance of oil export not only led to the neglect of the non-oil export productive base, but also brought about an unprecedented expansion in the volume of import of various categories by both the public and private sector.
Agriculture and manufacturing are parts of non-oil export sectors that have suffered from mismanagement,inconsistent and poor government policies and the lack of basic infrastructure, obsolete varieties and land tenuresystemEconomic growth with poor level of technology and, capital formation, inadequate utilization human resource,natural resources, are challenges that hinder growth. Inadequate infrastructure would lead to poor provision of agood communication system, electricity, water supply and poor transportation network. Tariffs system affectsthe locally made goods for exports due to high customs and excises duties. This discourages production of suchcommodities for export and causes prices to rise.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is;
1. To ascertain the impact of export promotion polices on economic growth in Nigeria.
2. To determine the level of how export promotion policy has negatively or positively affected the economy of Nigeria.
3. To find out the level of cooperation between the government agencies in charge of promoting export in Nigeria and the federal government.
4. To identify the challenges that has existed between export promotion council and Nigeria economic growth.
1.4 RESEARCH QUESTIONS
This study seeks to answer the following research question;
1. What are the impacts of export promotion policies on economic growth?
2. How has export promotion policy affected the Nigeria economy in recent time?
3. Is there any cooperation between government agencies in charge of promoting export and the government?
4. What are the challenges bedevilling export promotion policy in Nigeria?
1.5 STATEMENT OF HYPOTHESE
As a further guide in the conduct and advancement of this study, the researcher has formulated the hypotheses:
Ho: Export promotion policies have no impacts on economic growth.
H1: Export promotion have impacts on economic growth.
1.6 SIGNIFICANCE OF THE STUDY
Export promotion policy and economic growth in Nigeria (1970-2014) is considered significant from the following perspective:
The study would be of immense benefit to government for good policy and decision making that may result into boosting the Nigeria economy.
The study would be of great benefit to various stakeholder in export promotion policy in Nigeria so as to encourage investment purposes.
The study would be of immense benefit to the student because it would bring about great enlighten as regards export promotion policy.
The study would also be of great benefit to other researcher who may wish to replicate this study in other state of the federation because it would contribute to their stock of knowledge on export promotion policy.
1.8DEFINITION OF TERMS
Export- to send good or services across national borders for the purpose of selling and realizing foreign exchange.
Export promotion- incentive programs designed to attract more firm into exporting by offering help in product and marketing identification and development, pre-shipment and post-shipment financing, training, payment guaranty schemes, trade fairs, trade visits, foreign representation e.t.c.
Exporters –Individuals or firms engaged export business
Exportation– The act of moving good outside one’s or firm’s home country
Promotion– Creation of awareness of organization
programmes to target audience.
Non-Oil Export -Export of goods that are lot oil based
Non Profit Orgnaisation – Establishment that do not
have in its objectives monetary gains e.g. churches, charity organization etc.
Oil Gut– Over saturation of the oil market.
