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Economic Diversification

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Economic diversification has been regarded as a major tool and source of sustainable economic growth and development in developed, emerging and developing economies through direct effect on the GDP by increasing economic activities and indirectly through multiplier effect, backward and forward linkages among the various sectors of the economy (Anyaehie&Areji, 2015; Akpan, 2009;Gachino, 2007). Classical and neo-classical economics theory projected convergence between poor developing countries and the developed countries in the longrun largely due to transfer of technology and capital from the developed countries to the developing countries. One of the way capital and technology are transferred from developed countries to developing countries …show more content…

Economic diversification entails strong and deliberate involvement in wide range of economic activities key to the growth and development of a nation. Diversification of an economy resolves economic recession (Noko, 2016a), unemployment problem (Hyden, 2006), reduce poverty (Suberu et al, 2015), and improves economic growth (Anyaehie&Areji, 2015). In spite, of the resources abundance in Nigeria, the country has experienced years of poor economic performance, high level of unemployment, poverty, and experience years of …show more content…

The country currently is a mono-product or one sector economy exposing the country to oil price volatility in the international market and leading to urgent needs for economic diversification of the economy. Secondly, few literature has made significant efforts in investigating the relationship between economic diversification and Nigeria economic growth and development. Few studies that have made considerable effort to investigate the prospects of economic diversification on Nigeria economic growth are mostly inadequate to serve as basis for policy analysis, since majority of the study did not test any empirical relationship. Empirical work surveyed, as will be seen in the next chapter revealed that 80 percent of work on economic diversification adopted explorative survey that neither test any hypothesis nor answer any research question quantitatively and lacking basis for justification of the recommendation (Obaji&Olugu,

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