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Terms of Trade, Trade Openness and Government Spending in Nigeria

Author

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  • Obiakor, Rowland
  • Okwu, Andy
  • Akpa, Emeka

Abstract

In this study, we estimated the short-run and long-run effect of terms of trade, trade openness and government spending in Nigeria from 1981 to 2019. Data for this study was sourced from the World Bank’s World Development Indicators (WDI), Central Bank of Nigeria’s (CBN) Statistical Bulletin, and FRED Economic Data. Using the ARDL estimation method, the study found that terms of trade do not significantly determine government spending in both the short-run and long-run. The short-run effect of trade openness on government was not significant, but its long-run effect was negative and statistically significant, confirming the efficiency hypothesis in the relationship between trade openness and government spending.

Suggested Citation

  • Obiakor, Rowland & Okwu, Andy & Akpa, Emeka, 2021. "Terms of Trade, Trade Openness and Government Spending in Nigeria," MPRA Paper 110977, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110977
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    References listed on IDEAS

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    More about this item

    Keywords

    Terms of trade; Trade openness; ARDL;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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    This paper has been announced in the following NEP Reports:

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