INTERNATIONAL TRADE AND ITS EFFECT ON ECONOMIC GROWTH IN NIGERIA (1986-2017)

Authors

  • YUSUFF, S.A
  • ADEKANYE, TAIWO
  • BABALOLA, O.A

DOI:

https://doi.org/10.47672/aje.621

Keywords:

international trade, economic growth trade openness and education.

Abstract

Purpose: International trade is believed to contribute significantly to the growth of an economy. In order to examine the contribution of international trade to the growth of the Nigerian economy, time series data was collected between 1986 and 2017 to investigate the trends of trade openness, investment, and expenditure on education and GDP per capita in Nigeria within the study period. It also examined the effect of trade openness on economic growth in Nigeria.

Methodology: Annual secondary data was used for the study. Data on GDP per capita, trade openness, investment and expenditure on education were sourced from World Development Indicator and Central Bank of Nigeria Statistical Bulletin.  The study employed The Ordinary Least Square (OLS) methods to investigate the effects of trade openness on economic growth in Nigeria.

Findings: Results showed that international trade is inversely related to GDP per capita within the study period however, the result is insignificant.

Recommendation: The study recommended that government should adopt essential trade oriented policy to enhance economic growth via high exports in order to accumulate more foreign earnings to boost output growth in the country

Downloads

Download data is not yet available.

Author Biographies

YUSUFF, S.A

 

Lecturer, department of banking and finance, Osun State polytechnic Iree.

ADEKANYE, TAIWO

Senior lecturer, department of banking and finance, Osun state polytechnic Iree

BABALOLA, O.A

Lecturer, department of Banking and Finance, Osun State Polytechnic Iree.

References

Adam Smith (1776). An enquiring into the nature and cases of the wealth of Nations. New York: The Modern Library.

Adeleye J. O. , Adeteye O. S. & Adewuyi M. O.(2015) Impact of International Trade on Economic Growth in Nigeria (1988-2012) International Journal of Financial Research Vol. 6, No. 3;

Adelowokan, O. A., and Maku, A. O. (2013). Trade Openess, Foreign Investment and Economic Growth in Nigeria: A Long Run Analysis. European Journal of Globalization and Development Research, 7(1); 446-458.

Adenugba, A.A. and Dipo, S.O. (2013). Non-Oil Exports in the Economic Growth of Nigeria: A Study of Agricultural and Mineral Resources. Journal of Educational and Social Research, 3(2), 403-418.

Almeida R, Fernandes A. M (2008) Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys Journal of Development Studies 44(5):701-727 DOI: 10.1080/00220380802009217

Arodoye, N. L., and Iyoha, M. A. (2014). Foreign Trade-Economic Groeth Nexus: Evidence from Ngeria. CBN Journal of Applied Statistics 5(1) (June, 2014).

Dilyara I. Makhmutova and Askar N. Mustafin (2017). Impact of International Trade on Economic Growth. International Journal of Scientific Study, 5(6): 140-144.

Edoumiekumo, S.G. and Opukri, C.O. (2013). Economic Growth Factor in Nigeria: The Role of Global Trade. American Journal of Humanities and Social Sciences, 1(2): 51-55.

Egbetunde, T and Obamuyi T . M (2018) Foreign Trade and Economic Growth: A Study of Nigeria and India. ACTA UNIVERSITATIS DANUBIUS Vol 14(7): 72-87

Elias, I. A. Agu R. E. and Eze, L. O. (2018). Impact of International Trade on the Economic Growth of Nigeria. European Journal of Business and Management, 10(18): 22-30.

Emeka, E. J., Fredrick, I., and Peter, A. (2012). Macroeconomic Impact of Trade on Nigerian Growth: An Empirical Evaluation. Research Journal of Business Management and Accounting, 1(4): 79-83.

Foreman-Peck, J. (1995), "˜A Model of Later Nineteenth Century European Economic Development', Revista de Historia Economica, 13 (3):441-71.

Grossman M. Gene and Elhanan Helpman (1991). Trade, Knowledge Spillovers and Growth. European Economic Review, 35(1): 517-526.

Hewins,W.E.S (1892). English Trade and Finance Chiefly in the Seventeenth Century. London Richard Clay and Sons Limited.

Jacob W. Musila and Zelealem Yiheyis (2015). The Impact of Trade Openness on Growth: The Case on Kenya. Journal of Policy Modelling, 37(2): 342-354.

Merale Fetahi-Vehapi Luljeta Sadiku,and Mihail Petkovski (2015). Empirical Analysis of the Effects of Trade Openness on Economic Growth: An Evidence for South East European Countries. Procedia Economics and Finance, 19 (1): 17 - 26.

Muhammad M. Yakubu and Benedict N. Akanegbu (2015). The Impact of International Trade on Economic Growth in Nigeria: 1981 - 2012. European Journal of Business, Economics and Accoutancy, 3(6): 26-36.

O'Rourke, K. H. and J. G. Williamson (1999), Globalization and History: The Evolution of a 19th Century Atlantic Economy (Cambridge, MA: MIT Press).

Olaifa, Subair and Biala (2013). Trade Liberalization and Economic growth in Nigeria: A Cointegration Analysis, Journal of Business, Economics and Finance. 2 (3).

Pazim. (2009). Growth and Export Expansion in Developing Countries. Journal of Development Economies, 12(3).

Sachs, Jeffrey D. (1987). Trade and Exchange Rate Policies in Growth-Oriented Adjustment Programs," in Growth oriented adjustment programs. Eds.: VITTORIO CORBO, MORRIS GOLDSTEIN, AND MOHSIN KHAN. Washington, DC: IMF, 1987

Sachs, Jeffrey D. (1989). The Debt Overhang of Developing Countries," in Debt, stabilization and development: Es- says in memory of Carlos Diaz-Alejandro. Eds.: GUILLERMO A. CALVO ET AL. Oxford: Blackwell, 1989, pp. 80-102.

Saibu M. O. (2004). Trade Openess and Economic Growth in Nigeria: Further Evidence on the Causality Issues. Soth African Journal of Economics and Management Science.

Saibu, F. M. (2012). Capital Flows, Trade Openess and Economic Growth Dynamics: New Empirical Evidence from Nigerian Economy. Department of Economics and Econometrics, University of Johannesburg, Johannesburg.

Solow, R.M. (1970) Growth Theory: An exposition. 1988 edition, Oxford: Oxford University Press.

Studnicka G. M, Z, and Hove .J. V (2016). Distance and Border Effects in International Trade: A Comparison of Estimation Methods Vol. 10, 2016-18 | July 07, 2016 | http://dx.doi.org/10.5018/economics-ejournal.ja.

Sun, R., and Heshmati, A. (2010). International Trade and Its Effects on Economic Growth in China. IZA Discussion Paper No. 5151, The Institute for the Study of Labour, Germany.

Taylor L. (1991). "Economic Openness: Problems to the Century's End," in Economic liberalization: No panacea. Ed.: TARIQ BANURI. Oxford and NY: Oxford University. Press, Clarendon Press, 1991, pp. 99-147.

Vamvakidis, A. (2002), "˜How Robust is the Growth-Openness Connection? Historical Evidence', Journal of Economic Growth, 7, 1, 57-80.

Downloads

Published

2020-12-12

How to Cite

YUSUFF, S., ADEKANYE, T., & BABALOLA, O. (2020). INTERNATIONAL TRADE AND ITS EFFECT ON ECONOMIC GROWTH IN NIGERIA (1986-2017). American Journal of Economics, 4(2), 70–85. https://doi.org/10.47672/aje.621