This study therefore examines the major economic growth determinants as well as the direction of causality that exists between economic growth and some selected economic growth indicators in nigeria, employing the johansen cointegration and granger causality tests. Empirical analysis of the effects of trade openness on. Promoting economic growth in nigeria using time series analysis believed that the impact of monetary policy could be analyzed in terms of the behaviours of the intermediate targets of consumer price index and inflation rate in promoting economic growth in nigeria. 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. This study a nalyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. Introduction1 this note is based on the insights gained from field visits by world bank staff2 to six zone project sites in nigeria in december 2011. Trade, diversification and growth in nigeria munich. A growth model via the ordinary least square method was used to ascertain the relationship between fdi and economic growth in nigeria. This study will be essential to policy maker to know more about the performance of foreign trade and economic growth.
Further evidence on the causality issue article pdf available in south african journal of economic and management sciences sajems 72 january. Trade openess and economic growth in nigeria 1981 2009. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. Nigeria gdp growth rate 20102019 data 20202022 forecast. The effect of foreign direct investment on growth in sub. Iyoha1 this study examines the nexus between foreign trade and economic growth in nigeria using quarterly timeseries data for 1981q1 through 2010q4. This paper analyses the impact of trade on nigerias economic growth. This study investigates the effect of international trade on the economic growth of nigeria in the 21st century using annual timeseries data from 2000 to 2012. The ordinary least square estimating technique shows that there is a negative relationship between trade openness and the gdp of nigeria which is the proxy for economic growth. Yet, in its current poverty reduction strategy, nigeria identified deeper trade integration as a means to foster economic growth and alleviate poverty. This page provides nigeria gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news.
Pdf impact of international trade on the economic growth. The organisation projects a population of 203 million in 2025 and 279 million in 2050, when nigeria is expected to have the worlds 6th largest population. Pdf this study evaluated the impact of international trade on the nigeria economic growth. The work covered a period of 19812009 using an annual data from central bank of nigeria statistical bulletin. 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 impact of foreign direct investment fdi on the growth. At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. International trade is one of the major channels through which technology diffusion occurs. Foreign trade and economic growth in nigeria 1980 2010 1. The political, economic and social dynamics of nigeria. Facilitates global integration into global markets iyoha and oviakhi, 2002. This study examines the nexus between foreign trade and economic growth in nigeria.
Pdf foreign trade and nigerian economy researchgate. However, the results emanating from these studies have been inconclusive. The impact of foreign trade on the nigeria economy public. This paper examines the impact of trade on economic growth using in nigeria as a case.
This study investigated the impact of foreign direct investment on economic growth in nigeria. Impact of foreign direct investment on nigeria economic. Exports and government revenues are driven largely by oil, while most nigerians work in agriculture. Foreign direct investment and economic growth in nigeria. Indirect taxation and economic growth the relationship between indirect taxation and economic growth has been examined severally by different researchers. Growth has been quite broadly based with wholesale and retail trade, communications, and agriculture contributing most strongly. Nigerias trade policy is at a crucial turning point. Contribution of international trade to economic growth in. Free trade, export expansion and economic growth in nigeria. Data used in this study were extracted from cbn statistical bulletin, 2011 edition. International trade and economic growth in nigeria. Pdf effect of international trade on nigerian economic growth. Again the study reveals that trade partner of nigeria appears to be gaining more than the country.
This relationship with economic growth has not manifested in. The impact of foreign direct investment on economic growth. The descriptive analysis shows that the trend of trade openness in nigeria and economic growth has been positive but relatively unstable. Ogbokor 2001, investigated the macroeconomic impact of. Foreign trade and economic growth in nigeria 1980 2010. International or foreign trade itd or ftd has a direct relationship with economic growth and development. For instance, oyejide 1974, using nigeria, as a laboratory test ground that an increase in export proceeds could lead to an expansion. The seeming unchanged economic situation has made many nigerians to question the reliability of the fiscal policy in solving the present and escalating economic problems the nation is facing. The study analyzed the impact of foreign direct investment on nigeria economic growth over the period of 1999 20. Trade predominantly agricultural sector was an engine to economic growth in nigeria in the 19th and 20th centuries, which evidenced on the gdp. Descriptive and regression analyses were used as the estimation techniques. It, therefore, becomes necessary to highlight the monetary policy in nigeria. These perceived problems are being claimed to have caused a fast decline in the economic growth of nigeria. Nigeria is now at the midpoint of carrying out its development plan 19621968.
Effect of trade liberalization on economic growth in nigeria abstract this work aimed at examining the effect of trade liberalization on economic growth in nigeria from 1970 2014. Secondary source of data was employed in this study from 1986 to 2017 which were sourced from central bank of nigeria statistical bulletin 2017 published in 2018 and world development indicator published in 2019. Economic growth and development of nigeria economics essay. Free trade, export expansion and economic growth in nigeria doi. The impact of foreign trade on the nigeria economy abstract it was discovered that nigeria as a third world country lacks certain infrastructural facilities necessary for the smooth exportation and importation of goods and services. I have deemed it very necessary to embark on a research work or project on the impact of foreign trade on the nigeria economy.
Usman 2011 posits that international trade has not helped in promoting economic growth of nigeria because. It has acted as an engine of growth for particular national economies. In carrying out this project, linear multiple regression analysis techniques was used in assessing various components of foreign trade. Babcock business school, economics and banking and finance department, ilishanremo ogun state. An assessment of the impact of trade liberalization on the. Many do not believe that government policies can ever help in curtailing inflation in nigeria. The specific objectives were to ascertain the impact of oil. Infrastructure development and economic growth nexus in. Request pdf on aug 1, 2012, john sylvester afaha and others published foreign trade and economic growth. Evidence from nigeria find, read and cite all the research you need on researchgate. Foreign trade figures of nigeria economic and political. Few, ifany have examined this line of research in nigeria. Aug 30, 20 foreign trade and economic growth in nigeria 1980 2010 1.
Trade openess and economic growth in nigeria 1981 2009 an. Contribution of international trade to economic growth in nigeria. 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. Conceptual framework trade openness is the liberalization that has generated new markets. The role of foreign trade in economic development is considerable.
Observably, several factors like trade policy regime, quality of human resources, level of domestic. Saibu 2015 adopted the model developed by scully 2003 for cote divoire. Nigeria has enjoyed relatively strong economic growth over the past seven years but poverty is still a major concern. The impact of monetary policy on the economic growth of. Nigeria gdp annual growth rate 19822019 data 20202022. Agriculture is an important sector in the developing world. In order to fully account for feedbacks, a vector autoregressive model is utilized. It will also assist in providing the frame work of where work has been. The economic growth of nigeria to large extent depends on her trade with other. The main type of data used in this study is secondary. A mutual correlation exists between infrastructural development and economic growth in nigeria.
Foreign trade, economic growth, export, import, exchange rate, po. The data collected are secondary data from the annual report and statement of accounts and cbn statistical bulletin. The impact of monetary policy on the economic growth of nigeria. Impact of foreign direct investment on nigeria economic growth. The study also showed the importance of liberal market policies by pursuing export expansion strategies and by attracting foreign investment. Aug 27, 2016 impact of international trade on the economic growth of nigeria 19802012. In the 1960s, nigeria was on a par, in terms of aspirations to attain a very high level of economic growth and development, with its fellowoil producing and exporting countries such as malaysia and indonesia, but has since failed to keep pace with them. The study examined the impact of foreign trade on economic growth in nigeria. The study examines whether trade openness can be considered as a determinant of economic growth for see countries or not.
The gap between the minority rich and the majority poor is big and still growing. However and in contrast to the above, sekou 2015 in his study utilised ordinary least square method to estimate. This relationship with economic growth has not manifested in the emerging countriessuch asnigeria. The study focuses on the impact of trade on nigeria economic growth.
The unit root test and co integration test were carried out, and the model was estimated by. Nigeria wttprs247 page vii world trade organization. Determinants of economic growth in nigeria kazeem b. This study empirically examine the impact of international trade on economic growth in nigeria from 19702010. The analysis revealed that stock market has the potentials of growth inducing, but has not contributed meaningfully to nigerian economic growth, since only 26. Using a twogap model, it estimates the relationships between exports, foreign capital. Nigeria has been ranked as one of the most corrupt countries n the world. The impact of foreign direct investment fdi on the. The research intends to identify and evaluate the utility rendered by the importation and exportation of goods and services to the nigerian people and the economy. Time series data was used and sourced from the cbn statistical bulletin and annual reports. Such problems include high unemployment rate, low investment, high rate of inflation and unstable foreign exchange rate.
Pdf effect of international trade on nigerian economic. It contributes to economic growth and development as well as a major employer to majority of the people of subsaharan africa including nigeria, especially those in the rural areas. The specific objectives were to ascertain the impact of oil imports, nonoil import, oil exports, and nonoil exports. Many studies have attempted to estimate the impact of foreign direct investment fdi on growth around the world, but very few have focused on subsaharan africa. 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. The unit root test and co integration test were carried out, and the model was estimated by ols.
Jan 04, 20 the importance of shipping trade on economic growth in nigeria by dr. Chelliah 1989 observed that an increase in indirect taxation compared to direct taxation reduces economic growth more. 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. Meetings were held with relative stakeholders government officials, zone developers, and zone management in. A multivariate regression approach was employed to estimate augmented growth models. This has been argued that though trade is an engine of growth, but it has been in favour of. Statistical bulletin, annual reports and statement of accounts. There have been several studies that have investigated the relationship that exist between infrastructure development and economic growth. The objectives of this study were to ascertain the impact.
The stationarity of the variables were tested using the augmented dickeyfuller adf and phillips perron pp unit root tests. Economic growth is constrained by inadequate infrastructure, electricity, incentives, and policies that promote private sector development, and poor access to quality education. Ogbokor 2001, investigated the macroeconomic impact of oil exports of oil exports on the. One of the policy measures of the structural adjustment programme sap introduced in 1986 is trade openness.
In nigeria some authors had examined the performance of foreign trade and economic growth. Poverty in nigeria remains significant despite high konyeaso. In other words, foreign trade has contributed to the gross domestic product gdp of nigeria. Pdf the study examined the impact of foreign trade on economic growth in nigeria.
Their result revealed that foreign direct investment had significant impact on economic growth in nigeria. Over the last decade, services sectors have become increasingly important in domestic economic growth. Foreign tradeeconomic growth nexus central bank of nigeria. Nigeria has benefited from several years of robust economic growth, averaging over 6% per year in real terms since 2005. Impact of international trade on economic growth in nigeria 1988. Historically, the country has had a very restrictive import regime that generated substantial transfers to domestic producers and strong antiexport bias. However, from the 90s onward, opinions seemed to have converged amongst economists considerably. Babcock business school, economics and banking and finance department, ilishan.
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