International Trade and its Effect on Economic Growth in Nigeria (1986-2017)

Abstract

Purpose: International trade is believed to contribute significantly to the growth of an economy. In order to examine the contribution of international trade to the growth of the Nigerian economy, time series data was collected between 1986 and 2017 to investigate the trends of trade openness, investment, and expenditure on education and GDP per capita in Nigeria within the study period. It also examined the effect of trade openness on economic growth in Nigeria. Methodology: Annual secondary data was used for the study. Data on GDP per capita, trade openness, investment and expenditure on education were sourced from World Development Indicator and Central Bank of Nigeria Statistical Bulletin. The study employed The Ordinary Least Square (OLS) methods to investigate the effects of trade openness on economic growth in Nigeria. Findings: Results showed that international trade is inversely related to GDP per capita within the study period however, the result is insignificant. Recommendation: The study recommended that government should adopt essential trade oriented policy to enhance economic growth via high exports in order to accumulate more foreign earnings to boost output growth in the country