Abstract
According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment . The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.
Highlights
Nigeria is a mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors
The data used in this research are data on Gross Domestic Product Per Capita (RGDP), Total Import (IMP), Official Exchange Rate (OER), Broad Money (BMO), Inflation rate (INF), Total Natural Resources Rents (TNR), and Foreign Direct Investment (FDI) of Nigeria from 1970 to 2015
The data collected from World Bank Database for Nigeria from 1970 to 2015, which were summarized and analyzed in order to achieve the objectives of this research, are hereby concluded as follows: The time plot shows that gross domestic product (GDP) per capital, import of goods and services and foreign direct investment respectively depict upward trend but significantly dropped in 2015
Summary
Nigeria is a mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors. Knowing the direction at which this GDP per capita is tending and knowing the factors that can positively affect its growth, is a major concern to us as researchers. This research is determined to examine the trend of Nigeria’s economic growth as proxied by GDP per capita and other economic development variables for the period under review (1970 – 2015) using time plot; formulate a forecasting dynamic regression model for annual GDP Per Capita of Nigeria using data from 1970 – 2015; establish statements about predictors included in nation’s GDP per Capita; carry out some diagnostic statistical testing on the assumption of general linear models, especially homoscedasticity and normality assumptions; and to recommend to stakeholders the appropriate steps to take to begin the recovery process of the economy presently in recession
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
