Trade Openness, Economic Growth, and Environmental Concern In Nigeria

Abstract

This study is an attempt to analyze the relationship between trade openness, economic growth, and environmental pollution in Nigeria. The study introduces urbanization and ruralization as measures of the growth of urban and rural sectors to analyze their contributions to pollution in the country. Using Vector Error Correction Mechanism (VECM) and co-integration techniques, the result confirms the existence of the Environmental Kuznets curve in Nigeria. Also, there is a positive relationship between ruralization and environmental pollution both in the short and long run. However, there is a negative relationship between urbanization and environmental pollution in the long run, but positive in the short run. The study concludes with the recommendation that there is a need for policy makers to enact and enforce environmental laws that are aimed at regulating various sources of environmental pollution in the country.

Key Words: EKC, Trade Openness, Urbanization, Ruralization, VECM

Trade Openness, Economic Growth, and Environmental Concern In Nigeria