Interaction Between Economic Growth and Oil Products Importation in Nigeria Using Autoregressive Lagged Ordered Model (ARLOM)

The paper investigates the interaction between economic growth and oil products importation in Nigeria both in the long-run and short-run adopting autoregressive lagged ordered model (ARLOM). The data on the two variables span from 1983 to 2021. The pre-test analysis shows that both variables have the same order of integration, co-integrated in their normal levels and stationary at first difference. Estimation based on the least square method, shows that importation of oil products interacts significantly with economic growth at the long-run at 5% level. Moreover, there is no evidence of relationship in the short-run. Therefore, we recommend that if resources are well managed and oil importation dealings are very transparent, then Nigeria economy can grow better.&nbsp