International Trade and Economic Growth in Nigeria

Abstract

Nigeria is a third world economy that places great emphasis on trade both domestic and international. This research work was aimed at determining the impact of international trade on the economic growth. Variables used in the measurement of international trade include: Imports, exports, balance of trade and trade openness while real gross domestic product was used as a measure for economic growth using periodic data from the years 1985-2015. The econometric tests employed made use of the Unit Root Test to establish stationarity of the variables, the Johansen Co-integration Test was used to determine the long run relationship between the variables while the Vector Error Correction Model (VECM) was used to analyze the data so as to determine the speed of adjustment of the variables. The result showed that there is a long run relationship between international trade and economic growth, import and trade openness are both insignificant in the short run but significant in the long run while export and balance of trade are significant in both the short and long run. The granger causality test showed that economic growth is independent of imports, exports and balance of trade but economic growth is unidirectional with trade openness. Therefore, the study recommends that government should increase its exploration of finished goods and reduce importation of finished goods to increase economic growth.

Crude Oil Exports and Economic Growth in Nigeria

“…This confirms the presence of the Export-Led Growth Hypothesis in Nigeria. This finding is in tandem with the submissions of Ugwo, Umeh and Ochuba (2019); Usman, Madu and Abdullahi (2015); Nwoba and Abah (2010) in similar studies in Nigeria. But the finding in the study contradicts the discoveries of Baghebo and Atima (2013); Idowu (2016) in related works in the country.…”

“…This confirms the absence of the Export-Led Growth Hypothesis eventually in Nigeria This finding supports the conclusion of Contra Baghebo and Atima (2013); Idowu (2016) in related studies in Nigeria. Meanwhile, the result contradicts the submissions of Ugwo, Umeh and Ochuba (2019); Usman, Madu and Abdullahi (2015); Nwoba and Abah (2010) in similar studies in the country.…”

Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence From Nigeria

“…This study concludes that imports play a greater role to economic expansion in the Latin American nations as against many studies which focused mainly on exportled growth. Lawal and Ezeuchenne (2017) analysed the connection between international trade and economic growth in Nigeria and the results revealed a long run connection them. The result further showed one way causality from economic growth to trade openness, and no causality was established between economic growth and imports, exports and balance of trade.…”

Penerapan Error Correction Mechanism (ECM) Model: Pengaruh Perdagangan Internasional dan Penanaman Modal Asing (PMA) terhadap PDB Indonesia

“…Penelitian tentang dampak interaksi ekonomi suatu negara dengan negara lain telah dilakukan oleh para peneliti di dunia. Lawal & Ezeuchenne (2017) yang melakukan penelitian tentang perdagangan internasional dan pertumbuhan ekonomi di Nigeria menggunakan Vector Error Correction Model (VECM) menyatakan bahwa ekspor, impor, balance of trade, dan trade openness memberikan pengaruh signifikan bagi pertumbuhan ekonomi Nigeria dalam jangka panjang. Namun pada jangka pendek, hanya variabel ekspor dan balance of trade yang secara signifikan memengaruhi pertumbuhan ekonomi Nigeria.…”