Africa’s Oil-Exporting Countries Under the Spotlight in Study
Dr Omolade Adeleke, a Lecturer at the Federal University Oye-Ekiti in Nigeria, has been awarded a Doctor of Philosophy (Economics) degree for his thesis titled: “Monetary Policy and Manufacturing sector growth in Africa’s Oil-Exporting Countries”.
Adeleke said his interest in oil-exporting countries Algeria, Nigeria, Gabon, Egypt and Libya was the result of the need for these countries to ‘diversify their economies in order to achieve sustainable economic growth.
‘Both the International Monetary Fund (IMF) and the World Bank have advised these countries to embark on economic diversification owing to dwindling oil resources and the problem of “Dutch Disease” confronting them,’ said Adeleke. In economics, ‘Dutch Disease’ is a phenomenon that describes a situation where a discovery or an increase in the exploitation of a natural resource leads to a change in relative prices that consequently causes a reallocation of factors of production in favour of the natural resources sector, thereby hampering growth of the manufacturing sector.
Similar to previous studies on resource-endowed countries, the study confirmed the problem of ‘Dutch Disease’ in Africa’s oil exporting countries (AOECs) and provided support for a strong short run and weak long run relationship between monetary policy and manufacturing output growth.
The findings supported the school of thought that currency depreciation boosts domestic output.
They also established that the exchange rate system, monetary policy system (monetary zone), current level of investment in the manufacturing sector and objectives of the local monetary authorities all appear to be major factors that affect monetary policy relationship with the growth of the manufacturing sector in the AOECs.
Adeleke thanked all those who had supported him throughout his studies. ‘Ultimately I would like to thank the Almighty God who has made this achievement possible. Also, I acknowledge the support of my Supervisor Dr Harold Ngalawa throughout the study. My profound gratitude also goes to my wife and children for their tolerance and perseverance while the study lasted.’
Adeleke also thanked Professor E.O. Ogunleye of Ekiti State University in Nigeria for mentorship throughout his academic career and acknowledged his elder brother, Mr Festus Omolade, for his financial and moral support during his studies.
‘Finally, I thank God for my parents, Mr and Mrs Omolade who supported me with prayers during the study.’
Congratulating Adeleke on his accomplishment, Dr Ngalawa said: ‘His diligence and goal-getting attitude saw him completing his PhD within three years, a feat that many are struggling to achieve.’
Said Ngalawa: ‘Adeleke’s study is an important eye-opener on a variety of issues that we have not understood until now.’
Adeleke plans on honing his research skills and pursuing a career in academia. ‘My plan for the future is to become an erudite scholar in the field of economics and also a renowned economic researcher.’