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Impact of International Trade on the Growth of the Nigerian Economy

Author

Listed:
  • YUSUF Lateef Olarotimi

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • NCHOM Humphrey

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • OSUJI Paulinus

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • UDEORAH Sylvester Alor F.

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

Abstract

The paper examined the impact of international trade on economic growth in Nigeria. The objectives of this study were to ascertain the impact of foreign direct investment (FDI) inflow, net-export (NEX) and foreign exchange rate (EXR) on the growth of the Nigerian economy (GDP). Dynamic Ordinary Least Square (DOLS) multiple regression analysis technique was employed to estimate the various data collected via the central bank of Nigeria statistical bulletin covering the period of 1980 to2018. The results showed that all the explanatory variables except exchange rate were positively linked with economic growth. More so, all the explanatory variables were statistically significant with economic growth except net export. The Durbin Watson statistics value of 1.81 suggested that the explanatory variables in the model are not serially correlated. Thus, the model is good for policy implementation. Based on the findings, the paper recommended that; Government should maintain a good market driven exchange rate policy in order to encourage local production that will lead to increase in international competiveness which in turn will result to increase in economic growth. Also, government should implement efficient and specific macroeconomic policy geared toward improving safe business environment that will attract more foreign investment in order to increase the growth of the Nigerian economy.

Suggested Citation

  • YUSUF Lateef Olarotimi & NCHOM Humphrey & OSUJI Paulinus & UDEORAH Sylvester Alor F., 2020. "Impact of International Trade on the Growth of the Nigerian Economy," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 573-576, August.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:8:p:573-576
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    References listed on IDEAS

    as
    1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    2. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
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