TEL  Vol.4 No.3 , April 2014
Linking Market Internality to the Non-Oil Sector in Nigeria
ABSTRACT

Economists coined the concept of market externality to show that activities in a market affect third parties. An interesting question which economists have left unanswered is whether or not third parties too can affect markets/economy, for there is no concept in economics on how thirdparty activities affect market transactions. This paper therefore explores this issue, using the concept of market internality for this purpose. Four nonmarket activities such as poverty, corruption, political instability, and primary school enrollment are studied to find out if they affect the Nigeria’s non-oil sector. The results showed that the variables have short-run relationships at significant levels.


Cite this paper
Ikwueze, L. (2014) Linking Market Internality to the Non-Oil Sector in Nigeria. Theoretical Economics Letters, 4, 190-196. doi: 10.4236/tel.2014.43027.
References
[1]   Akinlo, A.E. (2012) How Important Is Oil in Nigeria’s Economic Growth. Journal of Sustainable Development, 5.
http://dx.doi.org/10.5539/jsd.v5n4p165

[2]   Otaha, J.I. (2012) Dutch Disease and Nigeria Oil Economy. African Research Review, 6, 82-90.

[3]   Lewis, P.M. (2014) The Dysfunctional State of Nigeria. Chapter 3.
http://www.cgdev.org/doc/shortofthegoal/chap3.pdf

[4]   Ross, M.L. (2001) Does Oil Hinder Democracy. World Politics, 53, 325-361. http://dx.doi.org/10.1353/wp.2001.0011

[5]   Abebefe, H.A. (1995) The Structure of Nigeria’s External Trade. Bullion, 19.

[6]   Akeem, U.A. (2011) Non-oil Export Determinant and Economic Growth Nigeria (1988-2008). European Journal of Business and Management, 3.

[7]   Igwe, C.N., Adebayo, M.S., Olakanmi, O.A., Ogbonna, I.G. and Aina, O.S. (2013) Promoting Wealth and Job Creation in Nigeria-Review of the Role of Entrepreneurship. Journal of Sustainable Development Studies, 3, 80-100.

[8]   Ekpo, A.H. and Umoh, O.J. (2013) An Overview of the Nigeria Economic Growth and Development. Online Nigeria, August. www.onlinenigeria.com/economics.

[9]   Obi, C. (1997) Oil, Environmental Conflict and National Security in Nigeria: Ramifications of the Ecology-Security Nexus for Sub-Regional Peace. ACDIS Occasional Paper.

[10]   Adeyeri, O. and Adejuwon, K.D. (2012) The Implications of British Colonial Economic Policies on Nigeria’s Development. International of Advanced Research in Management and Social Sciences, 1.

[11]   Moses, E.C. (2011) Oil and Nonoil FDI and Economic Growth in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2, 333-343.

[12]   St. Matthew-Daniel, B.J. (2013) The Nigerian Economy in the 21st Century. Online Nigeria.

[13]   Litwack, J. (2014) Nigeria Economic Update: World Bank Forecasts Rising Growth, Less Inflation, Urges Closer Federal and State Government Cooperation. The World Bank, Press Release, May 13, 2013.
http://www.worldbank.org/en/news/press-release/2013/05/13/nigeria-economic-update-world-bank-forecasts-rising-growth-less-inflation-urges-closer-federal-and-state-government-

[14]   Ikwueze, L.C. (2012) How Nonmarket Participants Cause Market failures. Proceedings of the New YorkState Economics Association, 5, 82-91.

[15]   Okoroafor, M.O. and Nweze, C. (2013) Poverty and Economic Growth in Nigeria. The Macrotheme Review, 2, 105115.

[16]   The World Bank (2014) Nigeria-Data, 2013. http://data.worldbank.org/country/nigeria

[17]   The World Bank (2014) Worldwide Governance Indicators-Nigeria. http://www.worldbank.org/en/country/nigeria

[18]   Index Mundi (2014) Total Net Enrollment Ratio in Primary Education.
http://www.indexmundi.com/nigeria/total-net-enrolment-ratio-in-primary-education.html

[19]   Chen, Y.Y. (2010) Autoregressive Distributed Lag (ADL) Model. www.mail.tku.edu.tw/chenyiyi/ADL.pdf

[20]   Dickey, D.A. and Fuller, W.A. (1981) Likelihood Ratio Statistics for Autoregressive Time series With a Unit Root. Econometrics, 49.

[21]   Said, S.E. and Dickey, D.A. (1984) Testing for Unit Roots in Autoregressive-Moving Average Models of Unknown Order. Biometrika, 71, 599-607.

[22]   Gujarati, D.N. (2006) Essentials of Econometrics. 3rd Edition, McGraw-Hill.

[23]   Mackinnon, J.G. (1991) Critical Values for Co-integration Tests in the Long-Run Relationships Readings in Co-Integration, eds.

[24]   MacKinnon, J.G. (1996) Numerical Distribution Functions for Unit Root and Co-integration Tests. Journal of Applied Econometrics, 11, 601-608. http://dx.doi.org/10.1002/(SICI)1099-1255(199611)11:6<601::AID-JAE417>3.0.CO;2-T

[25]   Johansen, S. (1991) Estimation and Hypothesis Testing of Co-integration Vectors in Gaussian Vector Autoregressive Models. Journal Econometrica, 59, 1551-1580.

[26]   Engle, R.F. and Granger, W.J. (1987) Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55, 251-276. http://dx.doi.org/10.2307/1913236

[27]   Maddala, G.S. (1992) Introduction to Econometrics. 2nd Edition, Prentice Hall, New Jersey.

 
 
Top