Overview

Original Research

TRADE LIBERALIZATION AND ECONOMIC GROWTH IN NIGERIA: JOHANSEN CO-INTEGRATION APPROACH

JOSEPH OJO EKIRAN 1; OLUSESAN SAMUEL AFOLABI 2, and IRETI OLAMIDE OLASEHINDE 3.

Vol 19, No 02 ( 2024 )   |  DOI: 10.5281/zenodo.10685933   |   Author Affiliation: (PhD), Department of Economics, Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti, Ekiti State, Nigeria 1,2; Department of Economics, Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti, Ekiti State, Nigeria 3.   |   Licensing: CC 4.0   |   Pg no: 557-564   |   Published on: 14-02-2024

Abstract

This study examined the relationship between trade liberalization and economic growth in Nigeria between 1981 and 2022, using Johansen co-integration and Wald tests. The findings showed that the variables employed were co-integrated, leading to the long-run relationship among the variables. The results revealed that the independent variables: net oil export (NOIEX), net non-oil export (NNOIEX), exchange rate (EXR) and foreign direct investment (FDI) have short-run impacts on the gross domestic product (GDP). It is therefore recommended that government should not relent in her responsibility to ensure that both oil and non-oil trades in Nigeria are more encouraged, formulating policies to support its efficiency and profitability to enhance sustainable economic growth in the country.

Keywords

Trade Liberalization, Net Oil Export, Net Non-Oil Export, Exchange Rate, Foreign Direct Investment, Johansen Co-Integration.