EXTERNAL TRADE AND ECONOMIC GROWTH IN NIGERIA
OMEKWE, Sunday Omiekuma & AKIDI, Victor and CHARLES, Daniel
The study examined the impact of external trade on economic growth in Nigeria with the use of econometrics method of co-integration and ECM methods.Data on GDP, FDI, trade openness and exchange rate were collected from the CBN statistical bulletin. The ADF and Johansen cointegration results showed that all the time series were stationary and co-integrated. Also, the parsimonious ECM result showed that FDI, trade openness and exchange rate are positively related to GDP. The coefficient of ECM has the hypothesized negative sign and significant. Meaning that the short run dynamic has been adjusted to long run equilibrium Based on the findings above, it was recommended that Nigerian government need to maintain a stable exchange rate regime to enjoy more of the benefits of trade. Also government should initiate appropriate economic policies through export promotion that would improve Nigeria’s trade status and as well create an enabling environment that would facilitate the inflow of foreign direct investment into the country.