Abstract
Difference in factor endowment has necessitated the need for cross-border trade which involves people from two different countries trading items of value with each other and as such laws, rules, regulation and medium of exchange is needed for economic development to take place. This paper investigates the impact of informal cross-border trade on national economic development: A case study of Nigerian Southern Borders. The study made use of Yamene (1967) to ascertain the sample size as a total of one-hundred and one (101) population was targeted from six different professions. The qualitative research design and purposive sampling technique was applied in this research work as the study also utilized oral interview technique. The study made use of descriptive statistics, multiple regression and pearson product moment correlation coefficient analysis for the purpose of data analysis. The result of the analysis indicated a positive and significant relationship between cross-border trade and per capita income whereas a negative and insignificant relationship was identified between informal goods coming in and going out of the country. Thus, the study recommends the following - fully integrated e-payment systems for duties, streamlined goods clearing systems, robust whistle blowing system tied to good reward system, frequent transfer of officers in and out of the border posts, enhanced compensation system for officers, adoption of incentive and regulatory policies by government to promote indigenous entrepreneurship and lastly, enhanced profiling system of duty payers for extension of discounts, rebates and waivers based on their transaction history from time to time. Keywords: Import, Export, Fine, Border, Security. DOI: 10.7176/DCS/11-7-06 Publication date: September 30th 2021
Highlights
1.1 Overview The difference in location and accessibility of natural resources/endowments has necessitated the need for international trade
The main purpose of this work is to investigate the implication of informal cross-border trades on national economic development in Nigeria, with a view to helping government and industry practitioners to understand the nature of informal cross border trade and the impact on national economic development
The result from the survey shows that informal goods exported/imported has a negative relationship with standard of living of people in Nigeria
Summary
1.1 Overview The difference in location and accessibility of natural resources/endowments has necessitated the need for international trade This entails the movement of people, goods, and services from one country to another. The comparative advantage theory propounded by Ricardo in 1817 states the reasons why trade is necessary between countries This theory added that wastage is reduced, cost of production is reduced while the countries benefit from each other on the long run by reducing the duties imposed on goods imported and exported. Cross-border trade (CBT) can be defined as trade that involves two countries of which there is a given place called a border (this is a point/line/area that demarcates a country’s geographical location from that of another and demarcate the home country from a foreign country) via some statutory barricade such as a toll gate (this is usually a gate that cuts across or separates two countries or states, mostly manned by national customs officials who check entry/exit documents before passengers and/or goods can cross from one country to another). The borders are not devoid of issues between settlers at the border towns on both side of the divide, as well as the notorious activities of informal traders who devise several strategies to avoid paying the stipulated duties (import/export) or smuggling of contraband goods
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