Nigerian Oil and Exchange Rates: Indicators of 'Dutch Disease'

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Periodical article

Title:	Nigerian Oil and Exchange Rates: Indicators of 'Dutch Disease'
Author:	Struthers, John J.
Year:	1990
Periodical:	Development and Change
Volume:	21
Issue:	2
Period:	April
Pages:	309-341
Language:	English
Geographic term:	Nigeria
Subjects:	public revenue exchange rates Economics and Trade
External link:	https://doi.org/10.1111/j.1467-7660.1990.tb00379.x
Abstract:	This article assesses the impact of expanding oil revenues on non-oil sectors of the Nigerian economy from 1960 to 1985/86. Emphasis is placed on the effects of exchange rate appreciation during the 1970s on the agricultural, manufacturing and non-traded goods sectors. The analysis is conducted within a Dutch disease context. The term Dutch disease was first used in the mid-1970s and referred to the adverse effects on Dutch manufacturing of the Slochteren natural gas discoveries of the 1960s via their impact on the Dutch real exchange rate. Two main conclusions are that the decline of Nigerian agriculture during these years can be attributed to a combination of low real producer prices and insufficient government investment, as well as the overvalued Nigerian naira; and that the high real exchange rate may have benefited the manufacturing sector. Bibliogr., notes.