Global Journal of Management and Business Research, B: Economics and Commerce, Volume 23 Issue 3

monetary policies can often be used to incentivize investment. This will be a worthy addition to the structural approach for Nigeria. This paper also espouses a problem that is often challenging to address. As we have said that many developing countries suffer from this “structural syndrome”. Nigeria has long highlighted this problem and sought to diversify away from crude oil. However, this has proven difficult. Nigeria, and maybe most developing countries, often don’t have the political will or time to make this structural change. Building the manufacturing/technology sector (which is efficient and has products with high income elasticity of demand) is huge investment of time and resources in education, infrastructure, policies etc. A term or two in office is not enough to do this. Political unrest and ethnic agitations often make fundamental changes challenging. A tribe or group of people who have always benefitted from existing structures will feel threatened. Also, if developing countries are ready to put their acts together and produce goods with high income elasticity of demand, would advanced countries be ready to reduce their export and surplus so that developing countries (new market entrants) can raise their exports (Bird, 2001)? Will they be international coordination? This might be a worthy question for the World Trade Organization. V. C onclusion Dampening aggregate demand may seem like a quick fix to Nigeria’s balance of payment deficit problem, however, this paper has showed that this measure creates recession. A more sustainable, and maybe difficult, approach is raising Nigeria’s output through a structural focus on efficient production of goods with high income elasticity of demand. This approach will raise wages, raise quality of life (if inflation can be managed), and strengthen the naira. A surplus balance of payment looks like the linchpin to Nigeria’s economic buoyancy. Hopefully Nigeria has the political will and patience to execute this approach. R eferences R éférences R eferencias 1. Bird, G. (1981). Financing balance of payments deficits in developing countries: The roles of official and private sectors and the scope for cooperation between them. Third world quarterly , 3 (3), 473–488. https://doi.org/10.1080/01436598108419575 2. Bird, G. (1983). Should developing countries use currency depreciation as a tool of balance of payments adjustment? A review of the theory and evidence, and a guide for the policy maker. The journal of development studies , 19 (4), 461–484. https://doi.org/10.1080/00220388308421877 3. Bird, G. (2001). Conducting Macroeconomic Policy in Developing Countries: Piece of Cake or Mission Impossible? on JSTOR. Third World Quarterly , 22 (1), 37–49. Retrieved from https://www.jstor.org/stable/ 3993344 4. Bird, G. (2006). An Introduction to International Macroeconomics: A Primer on Theory, Policy and Applications (3rd ed. 2006, p. 240). New York: Red Globe Press. 5. Bird, G. (2007). Macroeconomic policy and the international monetary fund. In An introduction to international macroeconomics (pp. 205–211). London: Macmillan Education UK. https://doi.org/ 10.1007/978-0-230-20918-3_16 6. Bird, G. (2014). Macroeconomic Policy in Open Economies. World Economics , 15 (3), 121–142. Retrieved from https://econpapers.repec.org/ article/wejwldecn/593.htm 7. Ezu, G., & Oranefo, P. I. (2023). Effect of Capital Flight on Foreign Investment in Nigeria. International Journal of Novel Research in Marketing Management and Economics , 10 (1), 43–52. 8. Fan, L.-S., & Fan, C.-M. (2002). The Mundell- Fleming Model Revisited. The American economist , 46 (1), 42–49. https://doi.org/10.1177/05694345020 4600106 9. Houthakker, H. S., & Magee, S. P. (1969). Income and price elasticities in world trade. The Review of Economics and Statistics , 51 (2), 111. https://doiorg/ 10.2307/1926720 10. Iyoboyi, M., & Muftau, O. (2014). Impact of exchange rate depreciation on the balance of payments: Empirical evidence from Nigeria. Cogent Economics & Finance , 2 (1), 923323. https://doi.org/ 10.1080/23322039.2014.923323 11. Knoema. (2020). Nigeria - Net financial account in current prices. Retrieved December 14, 2021, from https://knoema.com/atlas/Nigeria/topics/Economy/ Balance-of-Payments-Capital-and-financial-account/ Net-financial-account 12. Lagoarde-Segot, T. (2023). Trade, capital flows and the balance of payments. In T. Lagoarde-Segot (ed.), Ecological money and finance: exploring sustainable monetary and financial systems (pp. 225–260). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-14232-1_8 13. Oladipupo, A. O. (2011). Impact of exchange rate on balance of payment in nigeria. African Research Review , 5 (4). https://doi.org/10.4314/afrrev.v5i4. 69260 14. Pilbeam, K. (2013). International Finance (4th ed. 2013, p. 545). Houndmills, Basingstoke, Hampshire: Red Globe Press. 15. Popper, H., Mandilaras, A., & Bird, G. (2013). Trilemma stability and international macroeconomic archetypes. European economic review , 64 , 181– 193. https://doi.org/10.1016/j.euroecorev.2013.08. 006 6 Global Journal of Management and Business Research Volume XXIII Issue III Version I Year 2023 ( ) B © 2023 Global Journals Nigeria’s Balance of Payment Crisis: Causes and Recommendations