IMPACT OF INTERNATIONAL TRADE ON PRIVATE SECTOR DEVELOPMENT IN NIGERIA
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IMPACT OF INTERNATIONAL TRADE ON PRIVATE SECTOR DEVELOPMENT IN NIGERIA
Abstract
This study looked at how foreign commerce affected Nigeria’s private sector development. The study’s entire population consists of 200 CBN Uyo staff. The researcher employed questionnaires to collect data.
The descriptive survey research design was used for this investigation. The survey used 133 respondents, including economic advisers, policy officers, senior and subordinate workers. The acquired data was organised into tables and analysed using simple percentages and frequencies.
Chapter one
Introduction
1.1 Background of the Study
Abebefe (1995) defined commerce as the exchange of goods through market interactions. International trade refers to trade transactions that take place between two or more countries. Accordingly, Samuelson and Nordhaus (2002) define international trade as the export and import of products, services, and capital between countries.
International commerce improves specialisation and enhances productivity (Ingram and Dunn 1993, Samuelson and Nordhaus 2002), according to (Ezirim, Aloy, Okeke, Titus, Akpobolokerni, and Patrick 20l1).
Trade openness is defined as the positioning of the economy externally or internally. Outward positioning capitalises on chances to trade with other countries. Inward posture refers to economies that are unable to capitalise on trade prospects with other countries.
According to economic theories, open economies contribute to enhanced economic growth, whereas closed economies do not. The goal of open trade was to protect and promote domestic production by importing capital goods at low prices,
avoid balance of payment problems, increase the value of the Naira, and build the economy and eliminate poverty (Oyejide, 2001). The study’s goal is to assess how international commerce affects Nigeria’s private sector development.
1.2 Statement of the Problem
The perceived benefit of international trade is being hampered by problems that are impeding Nigeria’s rapid growth in the private sector. The primary goal of liberal trade was to stimulate national development, yet its perceived influence on poverty alleviation remains elusive.
A liberalised trade regime is expected to shift relative factor prices towards the more abundant factor. As a result, increased trade openness raises labour prices and raises people’s living standards, eliminating poverty. However, if factor reallocation is impeded, the projected benefits of freer trade may not materialise.
Since 1992, the poverty index appears to have been increasing. According to Ajakaiye and Adeyeye (2001), poverty is defined as spending less than two-thirds of the average monthly household expenditure.
The poverty headcount index is calculated as the percentage of persons who live below this level. The study’s challenge is to assess the impact of foreign commerce on private sector development in Nigeria.
1.3 GOALS OF THE STUDY
The study’s main purpose is to explore the impact of foreign commerce on the development of Nigeria’s private sector. The particular objectives include:
i. Determine the impact of foreign commerce on Nigeria’s private sector development.
ii To better comprehend how international commerce affects Nigeria’s private sector development.
iii. To investigate the impediments to private sector development in Nigeria.
1.5 Statement of the Hypothesis
To ensure the study’s success, the researcher developed the following research hypotheses:
H0: International commerce has no substantial impact on private sector development in Nigeria.
H1: International commerce has a considerable impact on private sector development in Nigeria.
H02: There are no barriers for private sector development in Nigeria.
H2: There are barriers to private sector development in Nigeria.
Significance of the Study
The pursuit of international trade policy is motivated by the demand for a higher quality of life, as well as economic development and expansion. The study aims to provide important information to policymakers so that they can stimulate the economy with policies that promote international trade and raise people’s living standards.
Scope and Limitations of the Study
The study examines the impact of foreign commerce on Nigeria’s private sector development. The researcher faces various constraints that limit the scope of the investigation;
a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, which limits the investigation.
b) TIME: The study’s time frame does not allow for broader coverage because the researcher must balance other academic activities and examinations with the study.
Definition of Terms
INTERNATIONAL TRADE DEFINED.
International trade refers to the export and import of products, services, and capital between countries or beyond national borders.
TERMS OF TRADE DEFINED.
This is the rate at which one country’s goods are exchanged for those of another.
POVERTY DEFINED.
Poverty is defined as spending less than two-thirds of the average monthly household expenditure.
TRADE OPENNESS DEFINED.
Trade openness is described as the economy’s posture, either outward or inward. Outward positioning capitalises on chances to trade with other countries. Inward posture refers to economies that are unable to capitalise on trade prospects with other countries.
INTEREST RATE DEFINED.
Interest rates are borrowers’ rental payments for using credit, and lenders’ return for parting with liquidity (CBN, 1997).
Financial performance is defined.
This is the assessment of the firm’s financial returns or goals using an evaluation method or financial indicators.
RETURN ON INVESTMENT IS DEFINED
The return on investment measures the firm’s efficiency in utilising invested money. The ratio is calculated by dividing net profit after tax by total capital paid.
Customer Satisfaction Defined
Meeting or exceeding customers’ expectations.
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