Impact of Trade Openness on Nigerian Economic Growth: An Empirical Investigation, 1970–2011

DOI10.1177/0015732519894153
AuthorGerald C. Nwadike,Ani Kelechi Johnmary,Chukwuma Samuel Alamba
Publication Date01 May 2020
SubjectCommentaries
Impact of Trade
Openness on Nigerian
Economic Growth: An
Empirical Investigation,
1970–2011
Gerald C. Nwadike1, Ani Kelechi Johnmary2 and
Chukwuma Samuel Alamba3
Abstract
Geopolitical territories have often engaged in one form of trade or another with
their neighbours. That is because no nation in the world can survive without one
form of trade with other sovereign states. This study examines the nature of trade
openness and economic growth in Nigeria from 1970–2011. The emphasis of this
empirical study is to ascertain the impact of trade openness on Nigeria’s economic
growth. Causal comparative or ex-post facto research design was adopted in the
study. Econometric time series analyses like ADF unit root test, co-integration
test and the ordinary least squared (OLS) were employed in the study. The result
obtained was used to test the hypotheses, and it was revealed that (i) Trade
Openness has positive significant impact on Nigeria’s economic growth; while
(ii) Gross Domestic Product (GDP) responds to the shock of Trade Openness
value as a proxy of total import and total export divided by GDP as well as change in
Exchange Rate (DEXR) within Nigeria’s economy during the period of study. Thus,
the co-integration results indicate that there exists long-run relationship among
the variables used; hence; the researchers then recommended that there is urgent
need for the government to create enabling environment for good trade policy that
would attract both foreign and domestic private sector investment in the country.
JEL Codes: F13, B27
Keywords
Trade openness, GDP, economic growth, Nigeria
Commentary
1 Department of Economics, Imo State University, Owerri, Nigeria.
2 Department of History and Strategic Studies, Alex Ekwueme Federal University Ndufu-Alike, Ikwo,
Ebonyi State, Nigeria.
3 Michael Okpara University of Agriculture, Umudike, Nigeria.
Corresponding author:
Ani Kelechi Johnmary, Department of History and Strategic Studies, Alex Ekwueme Federal University
Ndufu-Alike, Ikwo, Ebonyi State, Nigeria.
E-mail: kani4christ@gmail.com
Foreign Trade Review
55(2) 239–247, 2020
© 2020 Indian Institute of
Foreign Trade
Reprints and permissions:
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DOI: 10.1177/0015732519894153
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