Time Series Analysis of The Effect of Crude Oil Revenue On Economic Development In Nigeria, 1981-2014
The Nigerian economy has moved from agricultural production and exportation as a dominant sector to oil production and exportation as the dominant sector. Many studies have found that the dominance of the oil sector may have slowed down economic development in Nigeria. It is against this backdrop, this study was carried out to investigate the effect of crude oil on economic development in Nigeria: using time series data sourced from World Economic Indicators of the World Bank, OPEC, and Central Bank of Nigeria (CBN) Statistical Bulletin (2013 edition). The Unit root test, Engel-Granger Co-integration and the Error Correction Methods (ECM) were employed for the analysis and the result revealed that crude oil revenue has a negative effect on Nigeria economic development in Nigeria. Against these findings the study recommended the diversification of the Nigerian economy in order to achieve rapid economic development.