COCOA EXPORT AND ECONOMIC GROWTH OF NIGERIA

This paper investigates if there is a significant long – run relationship between cocoa exports and economic growth in Nigeria. The study covers the periods between 1981 to 2014. The underlying models are the export led growth, hypothesis, neo – classical growth model, presbich trade model and Keynesian model. In the formulated model, real gross domestic product was used as a proxy for economic growth. The explanatory variables used were cocoa export earnings, exchange rate and government expenditure on agriculture. The study made use of unit root test and Johnsen maximum   likelihood test of co-integration. It was discovered that a long – run equilibrium relationship exist between cocoa export and economic growth such that it is elastic in nature meaning that a unit increase in cocoa exports will bring more than a proportionate increase in the real gross domestic products in Nigeria.