Economic Growth –Trade Liberalization Nexus: The Case of Nigeria

Abstract

This study uses the case of Nigerian economy to offer a robust insight on the extent to which trade liberalization matters for economic grow. Exploring ARDL modelling framework, we consider three alternative measures of trade liberation to determine whether the response of economic growth to trade liberalization is sensitive to the choice of the indicators of trade liberalization that is under consideration. We find significant effects of trade liberalization on economic but mainly in terms of trade openness and only in the short run situation. Thus, we recommend that policymakers consider alternative trade liberation strategies such as deeper integration framework capable of promoting the development of regional human capital and consequently long term economic growth.