TRADE LIBERALIZATION AND ECONOMIC GROWTH IN NIGERIAJournal: International Journal of Advanced Research (Vol.6, No. 9)
Publication Date: 2018-09-08
Authors : Onuorah a. c.;
Page : 389-400
Keywords : Domestic Product Degree of Openness Exchange Rate.;
This study examined trade liberalization and economic growth in Nigeria. Secondary data were sourced from CBN statistical bulletin and World Bank Development indicators over a period of 28 years, 1990 ? 2017. The study proxied Trade Liberalization by Degree of Openness (DOP), Exchange Rate (EXR), Balance of Payment (BOP), Inflation rate (INF), Foreign Direct Investment (FDI), Balance of Trade (BOT) and Net Exports (NEXP) as the independent variables, while Gross Domestic Product (GDP) was proxied for Economic Growth in Nigeria as the dependent variable. The study applied E ? view 7.0 version and used Ordinary Least Square (OLS) for the estimation of the result. The results/findings revealed that the independent variables: DOP, INF, FDI, BOT and NEXP have positive significant impact on GDP while EXR and BOP shows a negative impact. The coefficient of R-squared which is 0.9896 shows that all the independent variables have 99% positive impact on GDP while the coefficient of Adjusted R-squared,0.9858 suggests that 98% of all independent variables could be explained by the changes in GDP. The study concludes that trade is an engine for growth and economic integration and therefore contributes heavily to the economic growth of a nation. Thus, it was recommended that government should formulate policies that will enhance both domestic and foreign trade to foster global integration and competition since it has been established that there is a relationship between degree of openness and volume of trade, competitiveness and integration.
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