Abstract
The contribution of the oil manufacturing sector output in Nigeria has raised concerns about whether or not the country has benefited from trade liberalization, especially when considering the country's major oil manufacturing sector. Therefore, this paper used the autoregressive distributed lag (ARDL) technique to investigate the short-run and long-run impacts of trade liberalization on the output of Nigeria's oil manufacturing sector. The analysis utilized a unit root test to integrate the data in a distinct sequence, and the ARDL Bounds tests validate the co-integration, indicating a long-term equilibrium among the variables. oil manufacturing output is strongly stimulated by positive changes in trade liberalization. The ARDL result shows that foreign direct investment had a positive but insignificant impact on the oil manufacturing sector while export had a positive and significant impact on the oil manufacturing sector in Nigeria, Similarly, import showed a negative and significant impact on oil manufacturing sector in Nigeria while exchange rate also exhibited a negative with insignificant impact on oil manufacturing sector output in Nigeria. The R2 showed that 70.4 percent of the independent variables explained oil manufacturing output in Nigeria while 29.6 percent did not capture or explain oil manufacturing sector. The findings suggest that the Federal Ministry of Trade and Investments in collaboration with Federal Ministry of Finance should prioritize initiatives aimed at strengthening and expanding trade liberalization policies. This involves reducing trade barriers, streamlining customs procedures, and actively participating in regional and international trade agreements.
Published Version
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