NIGERIAN AND MALAYSIAN GROWTH EMPIRICS: A COMPARATIVE ANALYSIS USING AUTOREGRESSIVE DISTRIBUTED LAG APPROACH
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Date
2017
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Journal ISSN
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Publisher
Journal of Academic Research in Economics
Abstract
Quit a number of similarities could be drawn from Nigeria and Malaysia. For instance, the duo
is in the tropical region, which favours agricultural cultivation. Also, both countries gained their
independence from the same colonial master (British) in almost the same year, and practice
federal system of government. Today, Malaysia as part of the emerging economies has set a
better economic pace in the country`s development, and hoping to attain her vision 2020 of
joining the developed economies of the world. However, Nigeria is in economic recession at
present as a result of a shortage in the export earnings. This paper uses autoregressive
distributive lags (ARDL) model, annual data from 1980 to 2015 to compare the macroeconomic
variable performances of both countries. The paper finds that Malaysian import shows a
negative and significant result, and the gross capital formation and export are positive and
significant to determine economic growth in both the short-run and long-run. The results further
show that, in Nigeria, export and gross capital formation is positive and significant in the shortrun only, but in the long-run gross capital formation is significant and export is insignificant.
Therefore, the Nigerian government policy-makers should direct the export earnings in the
short-run to a better productive sector that is capable of generating more exportation in the
long-run.
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Keywords
Nigeria, Malaysia, Economic growth, ARDL
Citation
Olabisi, E. O. (2017). NIGERIAN AND MALAYSIAN GROWTH EMPIRICS: A COMPARATIVE ANALYSIS USING AUTOREGRESSIVE DISTRIBUTED LAG APPROACH. Journal of Academic Research in Economics (JARE), 9(3), 364-377.