Industry and trade policy: A case study of stagnation in Nigeria
Agard, Beverlye C.
Master of Arts
The adoption of import oriented policies introduced distortions into the economy which caused Nigeria to ignore resource-based industry in agriculture, petroleum and metal production. The resulted in the transfer of technology into industries with a continual reliance on imported inputs. This pattern of production represented a drain on foreign exchange and was opposed to the initial assumption that import substituting industry would save foreign exchange. These policies introduced an anti-export bias and an anti-employment bias into the economy as the price of capital was kept artificially low which penalized the agriculture sector by adversely affecting the terms of trade enjoyed by the producers of agricultural commodities. Nigeria's implementation of policies that created disincentives to efficiently allocate resources was the initial cause of stagnation. However, the implementation of policies which created disincentives to expand production in agriculture and crude oil exports continued stagnation.
Economics, Commerce-Business; Economic history