IMPACT OF EXTERNAL TRADE ON NIGERIA’S ECONOMIC GROWTH (1980-2013).
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF EXTERNAL TRADE ON NIGERIA’S ECONOMIC GROWTH (1980-2013).
ABSTRACT
This study empirically analysed the impact of external trade on Nigeria’s economic growth between 1980 and 2013. The study used the Ordinary least squares (OLS) regression technique to analyse data from the CBN statistical bulletin for the relevant years.
The empirical results were based on the Augmented Dickey Fuller test. In the second stage, the Johansen cointegration test was performed. The discovery of long-run equilibrium led to the use of the Vector Error Correction Model (VECM).
The whole regression plane is statistically significant. This indicates that the explanatory factors [Net Exports (NEX), Degree of Openness (DOP), and Exchange Rate (EXR)] have a statistically significant effect on the dependent variable (RGDP). There is a strong causal association between external trade and economic growth in Nigeria.
According to the computed coefficient of multiple determination, variation in the explanatory variables influences 93.6% of the total variations in the dependent variable (RGDP).
The overall variation of 6.4% in the dependent variable is due to the influence of factors not included in the regression model. The study therefore recommended that the Nigerian government adopt vibrant and workable policies that will promote export increase over imports;
additionally, Nigeria as a country should concentrate on commodities in which it has a comparative advantage over other countries, as this measure will boost economic growth.
Need help with a related project topic or New topic? Send Us Your Topic