| Title: | An Econometric Analysis Of The Effect Of Crude Oil Revenue And Governance On Per Capita Income In Nigeria From 1990 To 2021 |
| Author(s): | Amadi O. H. |
| Abstract: | The study investigated the effect of crude oil revenue and governance on per capita income in Nigeria from 1990 to 2021. The study adopts the descriptive statistics, unit root test, bound co-integration test as well as Autoregressive Distributive Lag (ARDL) modelling techniques for the data analysis. Data for the empirical analysis were sourced from secondary sources like World Data Index (WDI) and CBN Statistical Bulletin (Various- Issues). The results of theanalysis indicated as follows; the ARDL ECM regression results showed that in the short run, the coefficient of current value of ORV had a positive (0.351395) relationship with RPI, the coefficients of both current and past lag 1 value of GOE has a positive (0.252742 and 1.095449) relationship with RPI, the coefficient of both current and past lag 1 value ROQ have a positive (0.619140 and 0.737970) relationship with RPI, the coefficient of VOA had a negative (-0.245623) relationship with RPI, the coefficient of COC had a positive (0.003027) relationship with RPI, The coefficient of ROL had a negative (-0.599409) relationship with RPI, while the coefficient of EXH had a positive (0.015328) relationship with RPI. The Breusch-Godfrey Serial Correlation LM Test result showed that there is no serial correlation in the model. The Breusch-Pagan-Godfrey Heteroskedasticity Test result suggests that there is no evidence of heteroskedasticity in the model. The study concluded that Crude Oil Revenue reduced Per Capita Income in Nigeria in the short run but increased Per Capita Income in Nigeria in the long run and recommended that Government should use the revenue generated from petroleum to invest in other domestic sectors such as Agriculture and manufacturing sectors in order to expand the revenue source of the economy and further increase the revenue base of the economy. |
| Keywords: | Crude oil, Governance, Per-Capita Income |
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