The second-tier foreign exchange market as a catalyst to non-oil exports

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Periodical article

Title:	The second-tier foreign exchange market as a catalyst to non-oil exports
Authors:	Ajilima, I. Agba, V.A.
Year:	1986
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	28
Issue:	1
Pages:	119-133
Language:	English
Geographic term:	Nigeria
Subjects:	foreign exchange exports
Abstract:	A critical examination of the extent to which the second-tier foreign exchange market (SFEM) can boost Nigeria's nonoil exports in general, and exports of agricultural and manufactured products in particular, suggests that the effectiveness of the SFEM to serve as a catalyst for promoting the desired goal of export diversification will depend on the nature and effectiveness of complementary policies, rather than on reliance on SFEM alone. This derives from the fact that: 1) the problem of nonoil exports per se is not that of low prices of exports only but also of stagnated production, especially in agriculture; 2) the stagnation of the agricultural sector is due to the adverse effects of the oil industry; 3) the structures of production of the manufacturing sector with its attendant high costs is a major constraint on exports from the sector; 4) the assumption of free international trade implicit in the SFEM scheme is erroneous, since foreign markets are highly protected or already saturated. Bibliogr.