Maritime business performance, economic diversification and real gross domestic product growth in emerging economies: A study of the Nigerian maritime transportation sector

Abstract

This study examined  maritime business performance, economic diversification and real gross domestic product growth in emerging economies: the Nigerian maritime transportation sector. Its main objective is to examine whether maritime trade is a viable option for economic diversification in Nigeria. Specific purposes are, one, to ascertain the effect of maritime trade on real gross domestic product, GDP, growth in Nigeria, 2008-2021 and two, to recommend measures for the strategic positioning of the maritime sector as one of the major sources of national income generation and a driver of the Nigerian economy. The study used secondary data collected from published bulletins of Nigeria Ports Authority, NPA, National Bureau of Statistics, NBS and Central Bank of Nigeria, CBN. The secondary time series data on port performance for 2008-2021, were analysed using least square regression analysis and the Engle-Granger Co-integration to test the financial variables at 5% level of significance. The study is anchored on modern investment portfolios model for deciding the appropriate investment options based on comparative advantage analysis and/or expected economic returns vis-a-vis the inherent risks. Findings revealed that there is a positive and significant relationship between total revenue and gross domestic product growth for period of assessment. Also discovered are several challenges militating against maritime transportation business in Nigeria such as infrastructural deficit and lack of investments. It therefore, means that the maritime transportation sector will improve the GDP of the Nigerian economy if the challenges are addressed and the sector is repositioned for optimal performance. The paper recommends that Government should develop a trade liberalization policy towards increasing private participation in the maritime sector and create enabling business environment by providing the required infrastructures.