ABSTRACT
This study examine export market
penetration of Nigeria product:
the Myths and Realities This study
analyses the constraint and challenges of export market penetration and how it
affect the economic development of Nigeria.
Regression analysis was used in cause
of this study. Model was formulated to know the
relationship between export trade, exchange rate, agriculture production,
manufacturing output and bank loan to export .Secondary data was used to
ascertain the correlation between the export and increase in economic growth.
The result show exchange, agriculture
product and manufacturing index, play significant effect on the export
penetration and their contribution to export trade is still very low. It
therefore patients that government should be able to channel fund to promote
local export trade in order to increases productivity of industrial sector so
as to enhances international trade of Nigeria.
TABLE OF CONTENT
Title pages
Certification
Dedication
Acknowledgement
Abstract
Table of Content
CHAPTER ONE: BACKGROUND OF THE STUDY
1.1 Introduction
1.2 Statement of the Problems/Background
of the study
1.3 Aim and objectives of the study
1.4 Justification of study
1.5 Research Questions
1.6 Statement
of Hypotheses
1.7 Methodology of the study
1.8 Scope of the study
1.9 Organization
of the study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Concept and Definition of Export
Promotion
2.3 Comparative analysis of exports and
imports
2.3.1 Economy sector's performance
2.3.2 Review
of Agricultural. Export sector
2.3.3 Review of Manufacturing Export Sector
2.4 Export Diversification and economic
growth
2.5 Export
Promotion in Nigeria
2.6 Export
Financing in Nigeria
2.7 Constraints
on Export Promotion Strategies
CHAPTER THREE: STRUCTURAL COMPOSITION OF EXPORT
PENETRATION STRATEGIES IN NIGERIA
3.1 Introduction
3.2 Major
Tradition Export of Nigeria 3
3.3 Non
Traditional Product of Export in Nigeria
3.3.1 Mining
products
3.3.2 Oil
and By- products
3.3.3 Agriculture and Liver stock
Sector
3.3.4 Seafood Products
3.3.5 Textile and Apparel Sector
3.3.6 Chemical Sector
3.3.7 Siderurgical
Metallurgical Sector
3.3.8 Woods and Papers Sector
3.3.9 Metal Mechanical Sector
3.3.10 Miscellaneous (includes
Jewelry)
3.3.11 Non Metal Mining Sector
3.3.12 Furs and Skins Sector
CHAPTERFOUR: RESEARCH METHODOLOGY, DATA ANALYSIS AND INTERPRETATION OFRESULT·
4. 1 Methodology
4.2 Method
of Estimation of Analysis
4.3 Model
Specification
4.4 Specification
of Data
4.5 Empirical
Results and interpretation of the
Regression Result
CHAPTER FIVE: SUMMARY, CONCLTJSION AND RECOMMENDATIONS
5.1 Summary
5.2 Finding
5.3 Recommendation
5.4 Conclusion
BIBLIOGRAPHY
CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
The ultimate aim of the government of
any country is to achieve a well-developed economy which can be depicted by the
realization of macroeconomic objectives of equitable income distribution,
prices stability and economic growth. Consequently, various policies and
strategies can be adopted in the realization of these objectives. While some
countries prefer inward looking import substitution model because it enables
them to evolve their own styles of development and become master of their own
fate, others believes in the adoption of export oriented strategy. Nigeria like
many other developing countries had at one time or the other adopted the policy
of import replacement under the philosophy of economic nationalism, have now
switched to export promotion strategy because it was realized that this was more
effective than import substitution in achieving a faster growth and structural
upgrading of an economy. Export promotion strategy is commonly referred to by
many scholars as governmental efforts to expand the volume of country's export
through export incentives in form of public subsidies, tax rebates, special
credit lines and other kinds of financial and non-financial-measures designed
to promote a greater level of economic activities in export industries so as to generate more foreign
exchange and improve the current account of the balance of payments Todaro, (2003). It has been
established in the literature that export trade 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, levies and
tariffs. These benefits will eventually transform into better living condition
for the nationals of the exporting economy since foreign exchange derived would
contribute to meeting their needs for some essential goods and services.
However, 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.
In the years immediately after independence, the Nigerian economy was dependent
on export of agricultural commodities for survival. However, as a result of the
setting up of commodity board by the federal government to act as buying agent,
this board went about fixing prices arbitrarily and below market prices,
therefore, farmers moved out of the business because they no longer found it
profitable. The policy effect was therefore negative development of exports in
the agricultural sector. Moreover, available data revealed that the
manufacturing sub sector of the economy had often been making minimal
contribution to export. The reason that can be adduced for this had been neglect
of the sector by colonial masters before independence in favour of export of
industrial· raw-materials
for their domestic industries. Even
after independence, poor infrastructure, lack of adequate finance, high cost of production, and
low market penetration due to poor quality control were factors constraining
the development of manufacturing exports.
1.2 STATEMENT OF THE
PROBLEMS/BACKGROUND OF STUDY
The Nigerian economy remains under
developed and backward. The situation is particularly disturbing given the
country's abundance of human and natural resources. In the 1960's and early
1970s, Nigeria, Malaysia, Indonesia, Taiwan, Singapore and South Korea had
similar per capital income, Gross Domestic product (GOP) growth rate, and under
developed political structures. Today, the "Asian Tigers" (as the
South East Asian countries are popularly know I have escaped under-development and poverty partly because of the way in
which their economies have been managed (EKPO, 2003).The Nigerian economy on
the other hand has experienced all the phases of typical business cycle;
decline, depression and/ or recession, recovery and boom. However, none of the
booms associated with agriculture, oil and financial sector has resulted in any
significant restructuring or transformation of the economy as they were linked
to the real sector. The result is that; Nigeria
has been unable to maximize the benefits associated with economic booms.
Currently, the government of Nigeria
is vigorously pursuing a market-determined interest rate regime/ system but not undermining the importance of export,
a policy which does not permit a direct state intervention in the general
interest of the economy. Therefore, the central macroeconomics issues in the
Nigerian economy thus, have to do with the problems of persistent unemployment,
high rates of inflation, sluggish growth in output. exchange rate, instability,
low capacity utilization, debt burden, large fiscal deficits and interest rate
fluctuations.
Given the serious concerned expressed
by all stakeholders and Federal Government, there is the pressing need to
conduct an empirical investigation of macroeconomic and real interest rate
spread in Nigeria in order to ascertain the cause as well as proffer some
policy suggestions. In the light of the above, every country would have to
achieve a growth rate that is consistent with her balance of payments
equilibrium on current account, and with its overall balance on the current and
capital account. Since trade (with emphasis on export) is the major engine of
economic growth, then, export promotions must therefore, be the focus of any
country that intends to achieve a desirable level of economic growth of many
countries in the world. This has been a lesson for most developing countries
particularly, Nigeria. Therefore, the issue is whether diversification should
be undertaken in the oil export sector or non-export sector of the economy. To determine this, a critical analysis of
the export penetration will absolutely necessary,
1.3 AIM
AND OBJECTIVES OF THE STUDY
The main aim of the study is to
examine the impact of export penetration on Nigeria economic, while the
specific objective are follows;
1. To
examine the impact of infrastructural support put in place by the government to
promote export programmes in Nigeria
ii. To
identified the penetration of Nigeria Products In International market
iii. To
investigate the challenges faced by exports programme In Nigeria
iv. To examine the impact of
export on the value of the' country's output
1.4 JUSTIFICATION
OF THE STUDY
This study is important because
adequate understanding of importance of export market penetration will enhance
economic growth and this will help the government relate policy thrust, geared
towards prioritizing export promotion in their objectives, so that necessary
economic development will be enhanced. Findings in this study will also help
other economic thinkers, scholars in having a clear cut idea as to what
constraint does export market causes in the economy.
1.5 RESEARCH QUESTIONS
The following are the research
questions:
i. Does export market
penetration enhance the development of agricultural sector in Nigeria?
ii. Does export promotion improve the level of economic development in Nigeria?
iii. Does exports market stimulate
exchange rate in Nigeria
iv. Does financial sector impact
positively on exports in Nigeria?
1.6 STATEMENT
OF HYPOTHESES
In pursuance of the objectives of the
study, the following hypothesis are imperative.
Ho: There is
no significant relationship between export market penetration and economic
development
Hi: There is significant relationship between export
market penetration and economic develop
Ho: There is
no significant relationship between exchange rate, index of agricultural
output, index of manufactural output, 'bank loans and exports.
Hi: There is significant relationship
between exchange rate, index of agricultural output, index of manufactural
output, bank Loans and exports
1.7 METHODOLOGY
OF THE STUDY
The methodology adapted in this partly
comprises of theoretical and quantitative techniques. Data requirements for the
study shall be obtained purely through
secondary data. Such data include the various publications of the Central Bank
of Nigeria (CBN), federal office of statistics (FOS), conference paper,
journals etc. The data abstained through the secondary data would be analyzed using an econometric
techniques, precisely regression analysis.
1.8 SCOPE OF THE STUDY
This study covers a period between
1990 - 2007. The choice of this
period is informed based on the
structural transformation polices out in place by the government during the periods.
1.9 ORGANIZATION
OF THE STUDY
This study is divided into five(5) chapters. Chapter one
contains the introduction of the study while Chapter two is the review of relevant literature, chapter three examines the
structure of export in Nigeria, while chapter four entails the research
methodology, presentation and analysis of results. Chapter five summarizes the
entire study and also brings out policy recommendations.
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