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Does Trade Cause Growth in Nigeria

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  • Emmanuel Nnadozie

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

Abstract

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 (AFEA), vol. 6(1), pages 52-75.
    • Handle: RePEc:afe:journl:v:6:y:2004:i:1:p:52-75
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    File URL: http://www.afeawpapers.org/RePEc/afe/afe-journl/wp-content/uploads/2014/07/JAD_vol6_Chp3.pdf
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    Cited by:

    1. Walkenhorst, Peter & Cattaneo, Olivier, 2006. "Trade, Diversification and Growth in Nigeria," MPRA Paper 23735, University Library of Munich, Germany.

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