EFFECT OF TRADE OPENNESS ON POVERTY REDUCTION IN NIGERIA

Abstract

This study looked at how trade openness affected the lowering of poverty in Nigeria from 1986 to 2020. The Central Bank of Nigeria Statistical Bulletin and the World Bank's Development Indicators were used to get data for the study. For the basic test, the study uses the Augmented Dickey Fuller unit root test. For the analysis, the study uses the Johansen Cointegration test and the Ordinary Least Square (OLS) method. The facts show that trade openness has had a big effect on the reduction of poverty in Nigeria and that this effect is currently bad. This study comes to the conclusion that making trade more open over time has not made people more productive. The study suggests, among other things, that the government should start important trade reforms which can boost domestic production, especially in agriculture, where we have a comparative advantage. This can be done by giving subsidies and tax breaks to industries and farmers who make goods that are being imported, so they can increase their production capacity to meet rising demand in the economy and export surplus.