RESOURCE REQUIREMENTS IN THE ADJUSTMENT PROCESS:A MACROECONOMETRIC SIMULATION STUDY OF THE NIGERIAN ECONOMY

THIS STUDY INVESTIGATES THE DOMINANT RESOURCE CONSTRAINT LIMITING GROWTH IN NIGERIA AS WELL AS THE DETERMINATION OF FUTURE RESOURCES REQUIREMENTS NEEDED TO ACHIEVE SUCH GROWTH. USING A SMALL SCALE MACROECONOMETRIC SIMULATION MODEL, THREE DIFFERENT EXPERIMENTS WERE CARRIED OUT. THE RESULTS SHOWED THAT AT A HIGHER TARGET GROWTH RATE, MORE RESOURCES WILL BE REQUIRED THAN AT A LOWER GROWTH RATE. AND THAT DOMESTIC RESOURCES GAP WAS THE DOMINANT(BINDING)RESOURCE CONSTRAINT LIMITING GROWTH IN NIGERIA. THIS THEREFORE SUGGESTS THE NEED TO MOBILIZE FOREIGN RESOURCES SO AS TO COMPLEMENT DOMESTIC SAVINGS.