External shocks, Economic Resilience and Economic Growth in Sub-Saharan Africa Countries: A case study of Nigeria

Main Article Content

Oladapo Awolaja
Olusegun Ajibola
Tonuchi Joseph

Abstract

The study examined external shocks, economic resilience, and economic growth in Sub-Saharan Africa (SSA) countries, using Nigeria as a case study for the period between 1990 and 2022. To achieve this objective, the study employed Fully Modified Ordinary Least Squares (FMOLS) to estimate the relationship after subjecting the series to preliminary testing. The findings revealed that external shocks had a significant impact on Nigeria's economic growth during the observation period. Specifically, it was found that oil price shocks had a significantly negative impact on Nigeria's economic growth, while global demand shocks had a significantly positive impact. However, the study did not find sufficient evidence to conclude that financial shocks had a significant impact on Nigeria's economic growth. Regarding the interactive terms, it was discovered that when economic resilience was interacted with all three measures of external shocks (oil price, global demand, and financial shock), there was a significant impact on economic growth. This implies that economic resilience alters the effect of external shocks on economic growth in Nigeria, both in sign and size. The implication is that policymakers in Nigeria should make efforts to develop and measure Nigeria's economic resilience to external shocks, subsequently making efforts to improve areas of weakness to strengthen Nigeria's level of resilience to external shocks, ensuring stable economic growth.

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How to Cite
Awolaja, O., Ajibola, O., & Joseph, T. (2024). External shocks, Economic Resilience and Economic Growth in Sub-Saharan Africa Countries: A case study of Nigeria. African Economic and Management Review, 4(1), 1–8. https://doi.org/10.53790/aemr.v4i1.3
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