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Rivers State University, Port Harcourt.
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| Title: | Crude Oil Production and External Reserves in Nigeria |
| Author(s): | Wokekoro O. E, Nwankwo N. U & Ogbodo C. O. |
| Abstract: | The study on the impact of crude oil production on the foreign reserves of Nigeria between 1990 and 2022 was conducted to determine to what extent crude oil production has impacted on Nigeria‘s foreign reserves. The study used foreign reserves as the dependent variable while crude oil production, foreign direct investment, balance of payment, and exchange rate served as the independent variables. The research model is autoregressive distributed lag model (ARDL). The descriptive statistics, unit root tests were the pre-estimation tests while heteroskedasticity and serial autocorrelation were the post-estimation tests. The study found that there is a positive and significant relationship between crude oil production, FDI, balance of payments, exchange rate, and foreign exchange reserves. The research suggested several key actions to enhance crude oil production and sales, including enhancing security measures and strengthening community relationships. These steps would help increase foreign exchange earnings, which could be deposited into the foreign reserves. Additionally, it emphasized the importance of creating and sustaining a favorable business environment to attract more Foreign Direct Investments (FDI) to the economy. An influx of FDI would alleviate pressure on foreign reserves, thereby making a positive contribution to them. |
| Keywords: | Crude Oil, Foreign Reserves, FDI, Balance of Payment, Exchange Rate. |
| Journal: | Journal of Economic Research and Development Studies Vol 1 No 1 |
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