Abstract
The study examined the effect of trade openness on the economic growth of Nigeria, using the Gross Domestic Product (GDP) as the dependent variable. Secondary data were used spanning from the year 1981 to 2018. Ordinary Least Squares (OLS) was used to estimate the effect of openness of trade on economic growth in Nigeria. Data for the study were sourced from World Development Indicators of the World Bank and the Central Bank of Nigeria (CBN) Statistical Bulletin. Results of the analysis indicate that trade openess has positive effect on economic growth in Nigeria, with an evidence of a long-run relationship. Results also contravene the a priori in the case of export and import which showed negative and positive signs respectively. For the reason above, it was recommended among others that an enabling environment should be provided by the government in the areas of infrastructural facilities to boost domestic production to enable them produce goods and services that can compete with their foreign counterparts in the international market to enhance further growth in Nigerian economy. Keywords: Trade Openness, Economic Growth, Gross Domestic Product. JEL Classification: F18, F21, O11, O47 DOI: 10.7176/JESD/11-4-19 Publication date: February 29 th 2020
Highlights
Trade openness may be referred to as the degrees to which a country or economy allows or have trade with other countries or economies of the world
The objective of this study which is to examine the impact of trade openness on economic growth in Nigeria, the above table shows the result while the linear representation of the estimated result using the Ordinary Least Squares (OLS) equation is shown below: Gross Domestic Product (GDP) = 262513.6 + 984461.DTO + 8.651712FDI – 2.6678EXP + 3.2355IMP
From the analysis of data and the findings in this research, it can be concluded that trade openness has positive effect on economic growth in Nigeria
Summary
Trade openness may be referred to as the degrees to which a country or economy allows or have trade with other countries or economies of the world. The purpose of the study is to empirically investigate the effect of trade openness on economic growth of Nigeria. Empirical Review The effect of trade openness on economic growth in Nigeria has generated large volume of empirical studies with mixed findings using series of data.
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