Impact of International Trade on the Economic Growth of Nigeria

Abstract

This study evaluated the impact of international trade on the Nigeria economic growth. The objectives of this study were to ascertain the impact of export trade on the Nigerian economy and to determine the impact of import trade on the Nigerian economy. Multiple regression analysis technique was employed in estimating the various components of foreign trade. The data used for the study was extracted from the 2012 edition of the CBN statistical bulletin, covering the period from 1980 – 2012. The results of the study showed that there is a significant impact of Export trade on the Nigerian economic growth. The study also revealed that there is no significant impact of import trade on the Nigerian economic growth. The researchers among other things recommended that conscious efforts should be made by government to fine-tune the various macroeconomic variables in order to provide an enabling environment to stimulate foreign trade by engaging in more of export trade and in effect curtail on import trade which has a negative effect or strain the economy, the underground economic activities of bunkering, smuggling, child and drug trafficking, and other related illegal activities should he properly checked, it was also recommended that the government should encourage export diversification, e.g. non-oil sector exports should be encouraged and concentration on oil sector export should be minimized.

Keywords: International Trade, Economic Growth, Import, Export, Nigeria.