Version 1
: Received: 14 December 2018 / Approved: 17 December 2018 / Online: 17 December 2018 (15:56:09 CET)
How to cite:
Adenomon, M. O. Bayesian VAR Modeling and Forecasting of the Dynamic Interrelationship between Economic Growth and Revenue from Oil and Non-Oil Sectors in Nigeria. Preprints2018, 2018120201. https://doi.org/10.20944/preprints201812.0201.v1
Adenomon, M. O. Bayesian VAR Modeling and Forecasting of the Dynamic Interrelationship between Economic Growth and Revenue from Oil and Non-Oil Sectors in Nigeria. Preprints 2018, 2018120201. https://doi.org/10.20944/preprints201812.0201.v1
Adenomon, M. O. Bayesian VAR Modeling and Forecasting of the Dynamic Interrelationship between Economic Growth and Revenue from Oil and Non-Oil Sectors in Nigeria. Preprints2018, 2018120201. https://doi.org/10.20944/preprints201812.0201.v1
APA Style
Adenomon, M. O. (2018). Bayesian VAR Modeling and Forecasting of the Dynamic Interrelationship between Economic Growth and Revenue from Oil and Non-Oil Sectors in Nigeria. Preprints. https://doi.org/10.20944/preprints201812.0201.v1
Chicago/Turabian Style
Adenomon, M. O. 2018 "Bayesian VAR Modeling and Forecasting of the Dynamic Interrelationship between Economic Growth and Revenue from Oil and Non-Oil Sectors in Nigeria" Preprints. https://doi.org/10.20944/preprints201812.0201.v1
Abstract
The present reality about the Nigerian economy calls for investment and development in the non-oil sector. This becomes necessary as a result of fall in the oil price in the global market. This paper examined the Bayesian Vector Autoregression (BVAR) modeling and forecasting of the dynamic interrelationship between Economic growth and revenue from the oil and non-oil sectors in Nigeria. To achieve this, annual data on Gross Domestic Product (GDP), revenue from oil and non-oil sectors were collected from Central Bank of Nigeria (CBN) bulletin, the sample from 1981 to 2008 was used for analysis, while sample from 2009 to 2014 was used for model validation. Six (6) versions of Sims-Zha BVAR models were compared for out-of-sample forecast, the result revealed the superiority of the BVAR6 model over the other BVAR models. Lastly, evidence from the decomposition forecast errors revealed that revenue of oil sector contributed 7.69% to GDP while revenue from non-oil sector contributed 0.12% to GDP in Nigeria. This paper therefore recommended that the present government should encourage investment that is geared toward development in the non-oil sector, of which it has the capacity to improve the Economic growth of the Nigerian economy.
Computer Science and Mathematics, Probability and Statistics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.