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Does Trade Cause Growth in Nigeria


  • Emmanuel Nnadozie

    () (Associate Professor of Economics, Tru-man State University)


It is widely believed in literature that trade has a positive effect on economic grouwth. For the developing countries, especially African countries that are considering a trade-led economic growth strategy, this has serious implications. This paper focuses on the relationship between trade and economic growth in Nigeria. First, the paper empirically demonstrates the importance of trade to Nigeria 's economic growth through the use of a multiple regression analysis of longitudinal data, whivh helps discern the combined effect of exports labor, and capital on Nigeria 's economic growth. Second, the paper performs a Granger causality test to determine the direction of causality between trade and growth in Nigeria. The results provide evidence that trade does have a significant positive effect on economic growth in Nigeria.

Suggested Citation

  • Emmanuel Nnadozie, 2004. "Does Trade Cause Growth in Nigeria," Journal of African Development, African Finance and Economic Association, vol. 6(1), pages 52-75.
  • Handle: RePEc:afe:journl:v:6:y:2004:i:1:p:52-75

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    References listed on IDEAS

    1. David E. Bloom & David Canning & Pia N. Malaney, 1999. "Demographic Change and Economic Growth in Asia," CID Working Papers 15, Center for International Development at Harvard University.
    2. Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December.
    3. Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2002. "Government Ownership of Banks," Journal of Finance, American Finance Association, vol. 57(1), pages 265-301, February.
    4. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series,in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.), Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084 Central Bank of Chile.
    5. Aghion, Philippe & Bacchetta, Philippe & Banerjee, Abhijit, 2004. "Financial development and the instability of open economies," Journal of Monetary Economics, Elsevier, vol. 51(6), pages 1077-1106, September.
    6. David E. BLOOM & Jocelyn E. FINLAY, 2009. "Demographic Change and Economic Growth in Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 45-64.
    7. Easterly, William, 2001. "The Lost Decades: Developing Countries' Stagnation in Spite of Policy Reform 1980-1998," Journal of Economic Growth, Springer, vol. 6(2), pages 135-157, June.
    8. Ghiath Shabsigh & Ilker Domaç, 1999. "Real Exchange Rate Behavior and Economic Growth; Evidence from Egypt, Jordan, Morocco, and Tunisia," IMF Working Papers 99/40, International Monetary Fund.
    9. Solow, Robert M., 2000. "Growth Theory: An Exposition," OUP Catalogue, Oxford University Press, edition 2, number 9780195109030.
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