State. Nigeria.
Mobile: 08023251748/08053007271
&
INIMINO, Edet Etim
Department of Economics, University of Uyo, P.M.B 1017, Uyo Akwa Ibom State, Nigeria
Mobile: 07061887921
Email: clergyedet1@yahoo.com
ABSTRACT
The study examines international trade and economic growth in Nigeria from 1980 to 2014. The broad objective of the study is to examine the impact of international trade on economic growth in Nigeria. To achieve this objective, time series data on gross domestic product (GDP), export (EPT) exchange rate (EXR) and Trade openness (TOP) were sourced from CBN statistical bulletin. The econometric methods of unit root test, Johansen co-integration test and Error Correction Mechanism (ECM) were employed as the analytical tools. The result of the parsimonious ECM shows that the overall model is satisfactory given the coefficient of determination of 82 percent and f-statistics of 8.958. Furthermore, it also reveals that there is a significant relationship between international trade and economic growth in Nigeria during the period of study. That is, international trade (proxied by exchange rate, trade openness and export) has impacted on economic growth (proxied by GDP) during the period of study. In addition, the long run dynamic result reveals that there exists a long-run relationship or equilibrium among the variables. This is because the coefficient of ECM is negatively signed and statistically significant. Meaning that, the short run dynamics adjust to long run equilibrium relationship. It was therefore concluded that there is need to maintain suitable or appropriate trade policy regimes regarding export, trade openness and the rate of exchange in order to foster economic growth in Nigeria.
KEY WORDS: Gross Domestic Product (GDP), Export (EPT), Exchange rate (EXR) and Trade Openness (TOP).
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