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PROJECT TOPIC: EXPORT REVENUE STRUCTURE AND BEHAVIOUR OF MACRO-ECONOMIC INDICATORS IN NIGERIA

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CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Globalization and international trade has made world economies to be interwoven. This has both positive as well as negative implications to economies both developed, developing and/or underdeveloped. It becomes imperative therefore, for the external sector to function optimally to guarantee macroeconomic stability of any economy. The external sector encapsulates a country’s economic transactions or activities with other countries of the world (trading partners). It is a measurement of the economic transactions between the residents of an economy and the rest of the world. An economy is seen to be economically stable when it has a fairly constant and/or steady growth in output, combined with low and stable inflation regimes. This is in consonance with Gbosi (2015) who opine that economic stability is usually seen as a desirable state for a developed and developing countries. The achievement of macroeconomic goals namely full employment, stability of price level, high and sustainable economic growth, and external balance, that has existed for longer , has been a policy priority of every economy whether developed or developing given the susceptibility of macroeconomic variables to fluctuations in the economy. The realization of these goals undoubtedly is not automatic but requires policy guidance. This policy guidance represents the objective of economic policy. Fiscal and monetary policy instruments are the main instruments of achieving the macroeconomic targets. There exists a consensus in the literature that an adequate and effective macroeconomic policy is critical to any successful development process aimed at achieving high employment, sustainable economic growth, price stability, long–viability of the balance of payments and external equilibrium (Omitogun and Ayinla, 2007). This, therefore, suggests that the significance of stabilization policy (fiscal and monetary policies) cannot be overemphasized in any growth oriented economy. The numerous global economic crises of the 20th century have made macroeconomic volatility a key issue in analysing the determinants of economic growth. The multiplicity of ways in which it affects the long-term growth potential of economies, its diverse causes and the array of methods by which it is measured, make economic volatility a complex and multidimensional phenomenon. We therefore consider the term “volatility” as a generic term, combining all the techniques available for measuring economic fluctuations. In a country like Nigeria, where among scores of natural resources only one – crude oil accounts for over 90 percent of its total export trade, there is no other route to achieving a national sustainable economic growth other than to find the appropriate ways to diversify the export base. With regards to every commodity exportable, emphasis on exports of non-oil products is not going to be only on the agricultural and mineral resources but in shipping products from across all economic sectors. The President Buhari’s administration is being asked by many to boost the government revenue through taxes and tariffs. Exporting all exportable products is the only way to improve the government revenue. The article will highlight the export revenue structure and behaviour of macro- economic indicators in Nigeria.



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