IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i8p573-576.html
   My bibliography  Save this article

Impact of International Trade on the Growth of the Nigerian Economy

Author

Listed:
  • YUSUF Lateef Olarotimi

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • NCHOM Humphrey

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • OSUJI Paulinus

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

  • UDEORAH Sylvester Alor F.

    (Institute of International Trade and Development, University of Port Harcourt, Nigeria)

Abstract

The paper examined the impact of international trade on economic growth in Nigeria. The objectives of this study were to ascertain the impact of foreign direct investment (FDI) inflow, net-export (NEX) and foreign exchange rate (EXR) on the growth of the Nigerian economy (GDP). Dynamic Ordinary Least Square (DOLS) multiple regression analysis technique was employed to estimate the various data collected via the central bank of Nigeria statistical bulletin covering the period of 1980 to2018. The results showed that all the explanatory variables except exchange rate were positively linked with economic growth. More so, all the explanatory variables were statistically significant with economic growth except net export. The Durbin Watson statistics value of 1.81 suggested that the explanatory variables in the model are not serially correlated. Thus, the model is good for policy implementation. Based on the findings, the paper recommended that; Government should maintain a good market driven exchange rate policy in order to encourage local production that will lead to increase in international competiveness which in turn will result to increase in economic growth. Also, government should implement efficient and specific macroeconomic policy geared toward improving safe business environment that will attract more foreign investment in order to increase the growth of the Nigerian economy.

Suggested Citation

  • YUSUF Lateef Olarotimi & NCHOM Humphrey & OSUJI Paulinus & UDEORAH Sylvester Alor F., 2020. "Impact of International Trade on the Growth of the Nigerian Economy," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 573-576, August.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:8:p:573-576
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-8/573-576.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/impact-of-international-trade-on-the-growth-of-the-nigerian-economy/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    2. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    3. Muhammad Usman & Saliha Ashfaq & Nabeela Mushtaq, 2012. "Relationship Of Export And Economic Growth; An Empirical Study Of Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 6(1), pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. T. Gries & M. Redlin, 2020. "Trade and economic development: global causality and development- and openness-related heterogeneity," International Economics and Economic Policy, Springer, vol. 17(4), pages 923-944, October.
    2. Dierk Herzer, 2005. "Does Trade Increase Total Factor Productivity: Cointegration Evidence for Chile," Ibero America Institute for Econ. Research (IAI) Discussion Papers 115, Ibero-America Institute for Economic Research.
    3. Mariam Camarero & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & Cecilio Tamarit, 2016. "Trade Openness and Income: A Tale of Two Regions," The World Economy, Wiley Blackwell, vol. 39(3), pages 386-408, March.
    4. Agnieszka Gehringer & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann Danzinger, 2016. "What are the drivers of total factor productivity in the European Union?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(4), pages 406-434, June.
    5. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
    6. James B. Ang & Jakob B. Madsen, 2013. "International R&D Spillovers And Productivity Trends In The Asian Miracle Economies," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1523-1541, April.
    7. Dervis Kirikkaleli & Tomiwa Sunday Adebayo, 2021. "Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 583-594, July.
    8. Miguel León-Ledesma, 2000. "R&D Spillovers and Export Performance: Evidence from the OECD Countries," Studies in Economics 0014, School of Economics, University of Kent.
    9. Katircioğlu, Salih Turan & Taşpinar, Nigar, 2017. "Testing the moderating role of financial development in an environmental Kuznets curve: Empirical evidence from Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 572-586.
    10. Khalid Ahmed & Agha Jahanzeb, 2021. "Does financial development spur environmental and energy‐related innovation in Brazil?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1706-1723, April.
    11. Herwartz, Helmut & Reimers, Hans-Eggert, 2006. "Modelling the Fisher hypothesis: World wide evidence," Economics Working Papers 2006-04, Christian-Albrechts-University of Kiel, Department of Economics.
    12. Jinsuk Yang & Qing Hao & Mahmut Yaşar, 2023. "Institutional investors and cross‐border mergers and acquisitions: The 2000–2018 period," International Review of Finance, International Review of Finance Ltd., vol. 23(3), pages 553-583, September.
    13. Matteo Mogliani, 2010. "Residual-based tests for cointegration and multiple deterministic structural breaks: A Monte Carlo study," Working Papers halshs-00564897, HAL.
    14. Philip Stevens & Jasson Urbach & Gabrielle Wills, 2013. "Healthy Trade: The Relationship Between Open Trade and Health," Foreign Trade Review, , vol. 48(1), pages 125-135, February.
    15. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    16. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    17. Ramon Moreno, 2001. "Pegging and stabilization policy in developing countries," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
    18. Georgios Bertsatos & Plutarchos Sakellaris & Mike G. Tsionas, 2022. "Extensions of the Pesaran, Shin and Smith (2001) bounds testing procedure," Empirical Economics, Springer, vol. 62(2), pages 605-634, February.
    19. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    20. Jason Allen & Robert Amano & David P. Byrne & Allan W. Gregory, 2009. "Canadian city housing prices and urban market segmentation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1132-1149, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:4:y:2020:i:8:p:573-576. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.