International Journal of Business and Marketing Management
Volume 5 Issue 4 Page 18 - 22. December 2017

Copyright 2017 Discourse Journals


Nigeria and Indonesia Economies: Catching up and Falling behind, a Tale of Economic Performances

Osagu N. Festus

Department of Economics, University of Ibadan, Nigeria.


Abstract

Nigeria and Indonesia are emerging economies and both share a lot of similar economic, political and demographic characteristics. However, Nigeria’s economy slid into recession in the second quarter of 2016 characterized by a GDP decline of 2.06% while that of Indonesia has been on a relative increase. Against this backdrop, this study undertook a comparative analysis of these two countries in terms of their socio-economic parameters. The results revealed that the oil price crash was the potent factor that caused Nigeria’s economic recession. However, Nigeria has the potential to become a major player in the global economy by virtue of its human and natural resource endowments but these potentials have remained relatively untapped over the years as result of oil resource dependence. Hence, Nigeria’s growth has continued to be dictated by the dynamics oil prices. Unfortunately, previous economic policies left the country ill-prepared for the recent collapse of crude oil prices.

Keywords: Economic recession, Oil price, GDP growth, Nigeria, Indonesia

 

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