Tag Archives: Trade Liberalization

Influence of Trade Liberalization on the Growth of Nigerian Economy: Autoregressive Distributed Lag Approach (Published)

This study examined the relationship between trade liberalization and economic growth proxied by gross domestic growth rate in Nigeria. The study specifically assessed whether there is a long run and short run causal relationship running from trade liberalization to economic growth in Nigeria. Trade liberalization was measured using trade openness, exchange rate, total import trade, total export trade and balance of trade. The data for the study were source from the CBN statistical bulletin for the period 1986 to 2014. The study used the Autoregressive Distributive Lag (ARDL) technique for data analysis. Findings from the analyses showed that trade liberalization has no long run causal relationship with gross domestic product growth rate in Nigeria. Also, trade openness and exchange rate have no short run causal relationship with gross domestic product growth rate in Nigeria. Lastly, total import trade, total export trade and balance of trade has short run causal relationship with gross domestic product growth rate in Nigeria. The study on the basis of these findings recommends the efficient use of total import trade, total export trade and balance of trade policy measures of trade liberalization in other to maximally benefit from trade liberalization.

Keywords: Exchange Rate, Gross Domestic Product, Trade Liberalization, trade openness

Effect of Trade Liberalization on Economic Development in Nigeria, 1980-2013 (Published)

The study explores the relationship between trade liberalization and economic growth in Nigeria. Two equations were estimated in which index of industrial production proxied as yearly average capacity utilization as a function of degree of openness, terms of trade and real export. Similarly, in the second equation, real gross domestic product as a function of degree of openness, terms of trade, real export and trade liberalization dummy was estimated. A vector error correction model was employed for the study in which results show that openness of the foreign sector and trade liberalization dummy have positive significant impact on both industrial performance and economic growth in Nigeria within the period under review. The paper therefore recommended for the removal of all known impediments to trade such as excessive import levies and arbitrary tariffs.

Keywords: Cointegration, Index of Industrial Production, Real Gross Domestic Product, Trade Liberalization, Vector Error Correction Model