The impact of trade on economic growth in ecowas countries. Furthermore, empirical testing of endogenous growth theory is very much in its infancy, particularly with respect to trade and ldcs. This study examines the indirect impact of trade protectionist policy on economic growth in nigeria by applying the bounds testing ardl approach to cointegration over the period 1990 to 20. The findings from the study showed that multinational corporation in both oil and agricultural sectors are key determinants of economic growth in nigeria. This might be attributed to the omission of the role of capital stock and labor in the trade growth nexus. Experts have argued that the relationship between trade and. The variables considered are real gdp, a proxy for economic growth, export volumes, import. International trade and its effects on economic growth in china international trade, as a major factor of openness, has made an increasingly significant contribution to economic growth. The second biggest african economy and the eigth biggest oil exporter in the world, nigeria was stronly hit by the world economic crisis, which led to a decline in the oil price. Onwuka and e guavoen 2007 studied globalization and its implications. The issues of international trade were considered by many economists. In nigeria some authors had examined the performance of foreign trade and economic growth. Free trade, export expansion and economic growth in nigeria doi.
The objectives of this study were to ascertain the impact of export trade on the nigerian economy and to. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a. Furthermore, the country continues to face massive developmental challenges, which include the need to reduce. It is also wise to say that the economic growth and development of a country largely depends on how its imports exchange for its exports. The study examines international trade and economic growth in nigeria from 1980 to 2014.
Observably, several factors like trade policy regime, quality of human resources, level of domestic. International trade is the exchange of goods and services between countries. Ogbokor 2001, investigated the macroeconomic impact of oil exports of oil exports on the. Impact of industrial sector on nigeria economic growth.
I have deemed it very necessary to embark on a research work or project on the impact of foreign trade on the nigeria economy. Three measures of trade protectionist are used including real exchange rate, subsidy, trade openness and the indirect effect on economic growth was captured through unemployment and industrial production. Ugbor department of economics, university of nigeria, nsukka, nigeria onuzuruike n. A series of unfortunate political and economic events have stalled nigerian growth. World economic situation and prospects 2019 the united nations. Nigeria has enjoyed relatively strong economic growth over the past seven years but poverty is still a major concern. Impact of international trade on economic growth in nigeria. One of the policy measures of the structural adjustment programme sap introduced in 1986 is trade openness. The study examines the impact of international trade on economic growth in nigeria, using net export i. The dynamic relationship between crime and economic growth.
According to azam 2009, the drift from trade restricted economy to trade liberalization is attributed to positive relationship that exists between export and economic growth. Effects of exchange rate fluctuations on economic growth. The nigerian services sector has shown impressive gains. This study purposed to determine the long run relationship between trade openness and economic growth in ghana and nigeria covering the period between 1980 and 2016. Studies on the effects of international trade on economic growth have varying outcomes. Free trade, export expansion and economic growth in nigeria. The study examines the effect of value added tax and customs and excise duties on nigeria economic growth. The impact of foreign trade on the nigeria economy public. The broad objective of the study is to examine the impact of international trade on economic growth in nigeria. International trade and economic growth in nigeria. Ijbfmr 4 2016 3646 issn 20531842 external reserves management and its effect on economic growth of nigeria akinwunmi, adeboye akanni1 and adekoya, rosemary bukola2 1department of banking and finance, achiever. This knowledge transfer through international trade may increase productivity and, by extension, lead to economic growth and development hart, 1983 and chuang, 1998. Impact of trade liberalization on economic growth of nigeria.
Trade openess and economic growth in nigeria 1981 2009 an. The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. International trade and economic growth economy watch. Nigeria is a third world economy that places great emphasis on trade both domestic and international. The impact of trade protectionist policy on the economic. Our findings are promising and support the view that the relation between trade openness and economic growth is not linear for ssa. This study examines the link between crime and growth based on the theory of rational choice and empirical data. There is, however, currently no major statistical analysis of how crime affects economic growth in that country. The impact of international trade on economic growth of. An econometrics analysis article pdf available in mediterranean journal of social sciences 514 july 2014 with 15,861 reads. Industrial development and growth in nigeria brookings institution.
Saibu 2015 adopted the model developed by scully 2003 for cote divoire. Available literature has shown that trade contributes to economic. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction. International trade and its impact on economic growth crucially depend on globalization. Based on the panel data of 16 out of 17 countries in the region, the study found that a one percent rise in. Department of accounting and finance faculty of management sciences, lagos state university, lagos, nigeria eaddress. Abstract this study examined the impact of international trade on economic growth in nigeria, with the objective of identifying the major factors influencing economic growth through international trade and make policy. Impact of trade openness on economic growth of nigeria. The impact of exchange rate regimes on economic growth. World economic situation and prospects 2020 the united nations. Foreign direct investment and economic growth in nigeria.
International trade has been an area of concern to policy makers and economists. Pdf effect of international trade on nigerian economic growth. The specific objectives were to ascertain the impact of oil imports, nonoil import, oil exports, and nonoil exports. Time series data was used and sourced from the cbn statistical bulletin and annual reports. International trade plays an important role in the economy of each individual country. Pdf real exchange rate volatility, economic growth and. Thus, for nigeria to benefit more from globalization we needs to integrate further into international trade by diversifying our exports. Pdf the impact of international trade on economic growth. Determinants of economic growth in nigeria kazeem b. After independence, the nigerian economy seemed very promising. International trade, economic growth, gross domestic product gdp, west africa.
Estimates of the services sectors share of nigerian output have increased following rebasing. United nations conference on trade and development, the five united. As far as the impact of international trade on economic growth is concerned, the economists and policy makers of the developed and developing economies are divided into two separate groups. For instance, oyejide 1974, using nigeria, as a laboratory test ground that an increase in export proceeds could lead to an expansion. In order to fully account for feedbacks, a vector autoregressive model is utilized. The study employed regression analysis as the method of analysis using cointegration. The impact of chinese investment and and trade on nigeria. Colonialism is a major feature of the economic history of nigeria. This paper therefore examines the impact of fdi on economic growth in nigeria, using vector autoregression var modelling to capture the structure of interrelationships among relevant variables.
Pdf impact of international trade on the economic growth. Download the full project work from chapter one to five with reference. Trade in nigeria, however, became popular with the advent of the colonial rule that brought in their wares and made nigerians their. Many saw nigeria, with 15% of africas population, as an emerging economy. Nigeria is now at the midpoint of carrying out its development plan 19621968. International trade and economic growth in developing countries neil foster. Nonoil export was also found to be positively and significantly impacting to economic growth in nigeria proxied by gdp. Nigeria gdp annual growth rate 19822019 data 20202022. International trade and economic growth in developing.
The nigerian economy is one of the largest in africa. Conceptual framework trade openness is the liberalization that has generated new markets. A comparative analysis of the pre and post structural adjustment programme sap periods in nigeria eleanya k. Evidence from nigeria, authorokwuchukwu odili, year2015. Evidence from nigeria john sylvester afaha1, aiyelabola omolayo oluwatobi2 1department of economics, college of social and management caleb university, imota lagos, nigeria 2 department of economics, college of social and management caleb university, imota lagos, nigeria correspondence author. The countrys economic growth is mainly driven by strong performance in the agricultural, trade, telecommunications, manufacturing and. Accordingly, ssa countries must have more effective trade openness, particularly by productively controlling import levels, in order to boost their economic growth through international trade. Facilitates global integration into global markets iyoha and oviakhi, 2002. The impact of international trade on economic growth in nigeria has generated large volume of empirical studies with mixed findings using cross sectional, time series and panel data. The stationarity of the variables were tested using the augmented dickeyfuller adf and phillips perron pp unit root tests. The impact of international trade on economic growth of nigeria. A skeptics guide to the crossnational evidence abstract do countries with lower policyinduced barriers to international trade grow faster, once other relevant country characteristics are controlled for.
The study examined the impact of foreign trade on economic growth in nigeria. Trade openness on nigeria economic growth was tested using vecm and granger causality test to estimate the relationship. Pdf effect of international trade on nigerian economic. Umoh introduction this article overviews the growth and development of the nigerian economy from inde pendence to present times. Since the late 1960s it has been based primarily on the petroleum industry. The impact of trade openness on nigeria economic growth within the sample period of 19812016 pdf. External reserves management and its effect on economic.
Effect of value added tax, customs and excise duties on. International trade and economic growth in nigeria iosr journal. Thus, international trade is the buying and selling of goods and services between countries. Industrialisation plays a significant role in economic development of any nation. This page provides nigeria gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news.
Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. In view of this, the study aims to provide evidence on the effect of international trade on nigeria s economic growth. Gdp growth over the past five years has been unimpressive for such a resource rich developing country. Their result revealed that foreign direct investment had significant impact on economic growth in nigeria. The project set out to examine the impact of international trade on economic growth of nigeria from 1980 2009, the variables used for this study are gdp, volume of import, volume of export, net export and trade. Crime is a major impediment to economic growth and development in nigeria despite measures taken to reduce it. Contribution of international trade to economic growth in nigeria. The annual economic rate of growth that was averagely over 7% during the last period also. Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. Nigeria gdp growth rate 20102019 data 20202022 forecast. The result shows that the overall regression was statistically significant at. Empirical study of a set of developing countries during the period 19742006. Sustained broadbased economic growth and poverty reduction are critical to its economic. Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market.
There exists a large empirical literature providing an affirmative answer to this question. In our economy today we are privileged to make use of the advanced world countries products having risen from improved or advanced technologies of the world. The project set out to examine the impact of international trade on econ omic growth of nigeria from 1980 2009, the variables used for this study are gdp, volume of import, volume of export, net export and trade. A multivariate regression approach was employed to estimate augmented growth models. This paper examines the impact of chinese foreign direct investment and bilateral trade with nigeria economic growth. This paper looks at the contribution of international trade to economic growth in nigeria, a developing country, and establishes a nexus between international trade and economic growth. The impact of trade liberalization on economic growth of nigeria, download the full project work with reference and abstract. The relationship between trade openness and economic. International trade and its effects on economic growth in.
While nigeria has made some progress in socioeconomic terms in recent years, its human capital development remains weak due to underinvestment and the country ranked 152 of 157 countries in the world bank s 2018 human capital index. Foreign reserve also has a positive and significant impact on economic growth. Munich personal repec archive the relationship between trade openness and economic growth. Britain eventually gained control of nigerian administration. Dynamic impact of trade openness on the economic growth in. Macroeconomic determinants of economic growth in nigeria. This study examined the impact of international trade on economic growth of nigeria from 1999 to 2015. Real exchange rate volatility, economic growth and international trade in an emerging market economy. Keywords macroeconomic, economic growth, investment, monetary policy and fiscal policy introduction. The study use an augmented aggregate production function apf growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment,exports, imports and economic growth. An overview of the nigerian economic growth and development. Nigeria is one of africas largest economies and its leading oil exporter, with the largest natural gas reserves.
Ayashagba and abachi 2002 investigate on the effects of foreign direct investment on economic growth from 1980 to 1997. Okoroji lazarus of the department of transport management technology federal university of technology, owerri authors correspo. Iyoha1 this study examines the nexus between foreign trade and economic growth in nigeria using quarterly timeseries data for 1981q1 through 2010q4. Secondary sources were explored in data gathering while simple regression technique was employed in data analysis for test of the study hypotheses. Nigerias economic potential is constrained by many structural issues, including inadequate infrastructure, tariff and nontariff barriers to trade, obstacles to investment, lack of confidence in currency valuation, and limited foreign exchange capacity. Aug 27, 2016 impact of international trade on the economic growth of nigeria 19802012. In recent times, however, there appears to be a dearth of empirical studies except perhaps adebiyi, 2006 on the impact of trade liberalization policy on industrial growth performance in nigeria.
This study evaluated the impact of international trade on the nigeria economic growth. The impact of international trade on economic growth in nigeria has generated large volume of empirical studies with mixed findings using. In view of this, the study aims to provide evidence on the effect of international trade on nigerias economic growth. Since nigeria has opened up to international trade and foreign investment it has achieved a better economic growth. Jan 04, 20 the importance of shipping trade on economic growth in nigeria by dr. Impact of industrial sector on nigeria economic growth 19812016 pdf. Contribution of international trade to economic growth in. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured. However and in contrast to the above, sekou 2015 in his study utilised ordinary least square method to estimate. Evidence from panel data milton iyoha1 and ajan okim the poor economic performance and growth of ecowas economies have become so challenging and this has necessitated research and discussions. Moyo, clement and kolisi, nwabisa and khobai, hlalefang.