International Trade And Economic Growth In Nigeria: A Vector Error Correction Model

Title:	International Trade And Economic Growth In Nigeria: A Vector Error Correction Model
Author(s):	Tuaneh Godwin Lebari
Abstract:	Nigeria actively participates in trade with various countries, emphasizing both domestic and international trade activities. This study examined the influence of international trade on economic growth, utilizing imports, exports, trade balance, and trade openness as indicators, with real gross domestic product (RGDP) serving as the measure of economic growth. The study utilized data spanning from 1981 to 2022, sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. Pretest were conducted leading to the use of Vector Error Correction Model to evaluate the dynamics and adjustment rate. The results demonstrated a sustained correlation among the variables. The Granger causality test demonstrated that economic growth was independent of imports, exports, and the balance of trade, yet had a unidirectional relationship with trade openness. The study recommends that the government should prioritize the production and export of finished products and reduce the import of finished products to stimulate economic growth.
Keywords:	KEYWORDS: Balance of Trade, Economic Growth, Export, International Trade, Imports, Trade Openness
Download Paper

Filter your search

Title

Abstract

Keywords

Authors