TRADE OPENNESS AND ECONOMIC GROWTH IN NIGERIA

ABINABO, Pere
Department of Business Management
Faculty of Management Science, Federal University Dutsin-Ma, Katsina State, Nigeria
pereabinabo2015@gmail.com
ABUBAKAR, Ahmadu
Department of Business Management
Faculty of Management Science, Federal University Dutsin-Ma, Katsina State, Nigeria
aabubakar@fudutsinma.edu.ng; ahmedabubakartamed@yahoo.com
ABSTRACT
This study empirically analysed the relationship between trade openness and economic growth in Nigeria
from 1990 to 2021. The study adopted descriptive statistics; Augmented Dickey Fuller (ADF) unit root
test for stationarity, Johansen Cointegration test for long run relationship and Error Correction
Mechanism (ECM) model as the methods of estimation. The data for the empirical analysis were sourced
from secondary sources like CBN Statistical Bulletin for the period under investigation. The results
indicate that a long-run relationship exists between trade openness (volume of export, import and
international trade) on economic growth in Nigeria. Furthermore, the result reveal that trade openness has
positive and statistically significant impact on economic growth in Nigeria; and that import has a negative
significant impact on economic growth in Nigeria. The study concludes that Nigerian economy has
benefited from other countries therefore; the country should open the boarders for foreign goods to come
into the country. The study recommends that government should encourage external trade and open the
boarders, but with caution to avoid dumping of some irrelevant goods to the country.
Keywords: Trade openness, economic growth, Nigeria.