Using degree of openness to proxy international trade, the ordinary least squares technique was employed to estimate the impact of international trade on gross domestic product. Statistical bulletin, annual reports and statement of accounts. This study evaluated the impact of international trade on the nigeria economic growth. The main aim of this study is to investigate the impact of international trade on nigeria s economic growth between 1981 and 2014. Trade in nigeria, however, became popular with the advent. The economy of china is the leader among countries in international trade. Jun 29, 2010 international trade and its impact on economic growth crucially depend on globalization. Based on the findings, the study recommends that policy makers in nigeria should pay more attention to factors that can boost stock market development, foreign direct investment, trade openness, inflation and banking sector development in order to impact economic growth more positively in line with theoretical evidence that market opening. The impact of international trade on economic growth of.
The main type of data used in this study is secondary. International trade and its effects on economic growth in. Impact of foreign direct investment and trade on economic growth foreign direct investment fdi and trade are often seen as important catalysts for economic growth in the developing countries. First of all, dollar and kraay 2000 is only one of the. In this epoch, it was believed that international trade has a positive effect on the economic growth. A historical appraisal of mexico, argentina, and brazil. An econometrics analysis article pdf available in mediterranean journal of social sciences 514 july 2014 with 16,034 reads. This study empirically examine the impact of international trade on economic growth in nigeria from 19702010. International trade and its effects on economic growth in china international trade, as a major factor of openness, has made an increasingly significant contribution to economic growth. This study examined the impact of international trade on economic growth of nigeria from 1999 to 2015. Thus, for nigeria to benefit more from globalization we needs to integrate further into international trade by diversifying our exports. This might be attributed to the omission of the role of capital stock and labor in the tradegrowth nexus. This study examines the impact of international trade on economic growth in nigeria. The specific objectives were to ascertain the impact of oil.
Impact of international trade on economic growth in. Thus, international trade is the buying and selling of goods and services between countries. Impact of economic liberalization on the growth of the. Later, during the neoclassic period, these two theories of the economic thought became autonomous relatively to each other. International trade has a huge impact on the level of the country wellbeing. Views differ on the impact of international trade on economic growth in developing countries.
Consequently, the importance of international trade was neglected in the context of economic growth. The main aim of this study is to investigate the impact of international trade on nigerias economic growth between 1981 and 2014. International trade and economic growth in nigeria iosr journal. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. Nigeria has enjoyed relatively strong economic growth over the past seven years but poverty is still a major concern. In order to fully account for feedbacks, a vector autoregressive model is utilized.
It also identifies other factors that prevail on economic growth in. Pdf the impacts of international trade on growth and. While some researchers suggest a positive effect, others found a negative effect. Did structural change account for productivity growth within manufacturing during the import substitution era. International journal of management and economics zeszyty naukowe kgs, no. An investigation into the impact of international trade in. Impact of foreign direct investment on nigeria economic growth. The relationship between trade openness and economic. Economic growth is the most powerful instrument for reducing poverty and improving. Download the full materials from chapter one to five with reference and abstract. Iyoha1 this study examines the nexus between foreign trade and economic growth in nigeria using quarterly timeseries data for 1981q1 through 2010q4.
Impact of foreign direct investment on nigeria economic. Pdf the study examined the impact of foreign trade on economic growth in nigeria. The impact of trade openness on nigeria economic growth within the sample period of 19812016 pdf. Exports and government revenues are driven largely by oil, while most nigerians work in agriculture.
The impact of trade liberalisation on economic growth in. Multiple regression analysis technique was employed in estimating the various components of foreign trade. International trade and economic growth economy watch. The countrys economic growth is mainly driven by strong performance in the agricultural, trade, telecommunications, manufacturing and. International trade and economic growth in nigeria global journals. According to the second measure of trade openness exports as a share of gdp, the findings indicate a threshold of 355. Pdf impact of international trade on the economic growth. The study concluded that economic liberalization has significant impact on the growth of the nigerian economy. Pdf impact of international trade on economic growth of. Trade can be traced back to the need for exchange, which evolved from the barter system to the money system. Although the overall effect of fdi on economic growth may not be significant, the components of fdi do have a positive impact. It is based on this premise that this study conducts an investigation into the impact that international trade through import and export channels has on nigerias economy.
The study employed regression analysis as the method of analysis using cointegration. Openness to trade and available human capital, however, are not fdi inducing. The methodology used is ordinary least squares ols and e new software package. After this threshold, trade s impact on economic growth. Impact of trade openness on economic growth of nigeria. Observably, several factors like trade policy regime, quality of human resources, level of domestic. There have been controversies regarding the effect of foreign direct investment on the growth of the host countrys economy. Impact of international trade on the economic growth of nigeria. The purpose of the study is to evaluate the effect of trade and finance evaluates the effort of nigerian economy on the on economic growth and development in nigeria and its impacts on development. The main objective of the study was to investigate the nature of relationship between inflation rate and economic growth rate. The impact of international trade on economic growth in south africa. The dynamic relationship between crime and economic growth. Nigeria is one of africas largest economies and its leading oil exporter, with the largest natural gas reserves.
The study made use of secondary data sourced from the central bank of nigeria cbn statistical bulletin and the national. The impact of international trade on economic growth of nigeria abstract the project set out to examine the impact of international trade on economic growth of nigeria from 1980 2009, the variables used for this study are gdp, volume of import, volume of export, net export and trade openness. To check for the direction of causality among the variables, dynamic vec model in used. According to the export led growth hypothesis, exports being the major source of economic growth have many theoretical justifications. Contribution of international trade to economic growth in nigeria. First, in keynesian theory more exports generate more income growth through foreign exchange. Pdf the impact of international trade on economic growth in. The impact of trade liberalization on poverty in ghana. This paper examines the impact of trade protectionist policy on economic growth for nigeria using annual data for the period of 199020. The hypothesis was developed on the basis of questionnaire survey, to analyze this issue figure 1.
The relationship between trade openness and economic growth. The project set out to examine the impact of international trade on economic growth of nigeria from 1980 2009, the variables used for this study are gdp, volume of import, volume of. Since nigeria has opened up to international trade and foreign investment it has achieved a better economic growth. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigerias economic growth between 1980 and 20. The study examines the impact of international trade on economic growth in nigeria, using net export i.
Available literature has shown that trade contributes to economic. Did the 2008 global financial crisis influence the host country corruption and inward foreign direct investments relationship. Aug 27, 2016 impact of international trade on the economic growth of nigeria 19802012. Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. Pdf effect of international trade on nigerian economic. Finally, the result showed significant negative effect of inflation rate on economic growth. Despite the rapid growth of capital flows, trade will be the basis for globalization also in the future. Pdf effect of international trade on nigerian economic growth. Fdi in nigeria contributes positively to economic growth. Pdf the impact of international trade on economic growth. Trade openness on nigeria economic growth was tested using vecm and granger causality test to estimate the relationship. The impact of trade protectionist policy on the economic.
This study is on inflation rate and economic growth in nigeria between the period 1980 and 20. Fdi is an important vehicle of technology transfer from developed countries to developing countries. The objectives of this study were to ascertain the impact of export trade on the nigerian economy and to determine the impact of import trade on the nigerian economy. International trade and its effects on economic growth in china. Trade openess and economic growth in nigeria 1981 2009 an. Pdf this study evaluated the impact of international trade on the nigeria economic growth. The project set out to examine the impact of international trade on economic growth of nigeria from 1980 2009, the variables used for this study are gdp, volume of import, volume of export, net export and trade openness. Pdf impact of international trade on the economic growth of nigeria. The findings however, showed that trade and finance has a direct impact on the economic growth and development in nigeria. International trade plays an important role in the economy of each individual country. The objectives of this study were to ascertain the. International trade, economic growth, gross domestic product gdp, west africa. Abstract this study examined the impact of international trade on economic growth in nigeria, with the objective of identifying the major factors influencing. As far as the impact of international trade on economic growth is concerned, the economists and policy makers of the developed and developing economies are divided into two separate groups.
However, one means of generating the amount of revenue for providing the needed infrastructure is through a well. A maj or constraint of this study is the short time needed to complete this study and problem of consistent and. Promotion of economic growth is one of the major objectives of international trade, but in recent times, this has not been the case because the nigerian economy is. 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. As a result of this there is direct effect on the economy of any nation, either positively or negatively. It also identifies other factors that prevail on economic growth in the country. Three measures of trade protectionist are used including real exchange rate, subsidy, trade openness and the indirect effect on economic growth was captured through unemployment and industrial production. This study examines the indirect impact of trade protectionist policy on economic growth in nigeria by applying the bounds testing ardl approach to cointegration over the period 1990 to 20. In recent times, however, there appears to be a dearth of empirical studies except perhaps adebiyi, 2006 on the impact of trade liberalization policy on industrial growth performance in nigeria. Khan 2005 postulates that, there are at least two aspects of any poverty impact analysis for a particular policy. The study analyzed the impact of foreign direct investment on nigeria economic growth over the period of 1999 20.
Whilst some scholars on the subject uphold the view that. Different reasons have been proposed for explaining the evidence found in previous studies dealing with this issue on exportled growth. Contribution of international trade to economic growth in. Beneficial effects of international trade economic development. Impact of international trade on the economic growth of.
After this threshold, trades impact on economic growth. The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. The countrys economic growth is mainly driven by strong performance in the agricultural, trade, telecommunications, manufacturing and the film industries. The ordinary least square ols technique was used as the analytical method. Beyond this threshold, the effect of trade on growth declines.
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. Hozouri 2016 focused on the 17 mena countries and posited that there is a positive relationship between economic growth and trade openness. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in nigeria. Impact of foreign direct investment and trade on economic. The impact of international trade on economic growth of nigeria. However, from the 90s onward, opinions seemed to have converged amongst economists considerably. Impact of international trade on economic growth in nigeria. Economic growth is constrained by inadequate infrastructure, electricity, incentives, and policies that promote private sector development, and poor access to quality education. Being a time series data, to avoid spurious regression result, the first step was to test for stationary of the data by using phillips peron unit root test.
Trade openess and economic growth in nigeria 1981 2009. Effect of foreign direct investment on economic growth in. Impact of international trade on economic growth in nigeria 1988. Trade liberalization had nonsignificant positive impact on output growth in nigeria. International trade and its impact on economic growth crucially depend on globalization.