Impact Of Trade Openness On Economic Growth Of Nigerian Economy:- Mbaekwe Chidimma M

ABSTRACT

This study examined the impact of trade liberalization on the economic growth ofNigerian economy from 1981 to 2017. The primary objective ofthe study is to evaluate the impact trade liberalization on the economic growth ofNigerian economy. Primary data sourced from the current edition of 2018 Central Bank Statistical Bulletin was used. The study employed ADF (Augmented Dickeyfuller), Co-integration test and the error correction test (ECM) for unit root test, long-run and error correctrespectively and the result ofunit rootshowed stationarity atfirst andsecond difference [1(1) and2(2)], the co-integration result indicated the presence oflong-run relationship while the error correction was rightly singed and significant. The study further revealed that the exchange rate is positively related to gross domestic product and significantly too. Net-export showed a positive relationship with economic growth, however the impact is insignificant while trade liberalization revealed a positive and significant relationship with economic growth ofthe economy. The study therefore recommend that the Nigerian government should as a matter of urgent pursues a favourable exchange rate regime that can put foreign exchange rate ofthe Nigerian economy in a better condition. This will put the economy into a better light which will put the economy and its product a better place to buy from and the best place to sale what isproduced abroad.