ABSTRACT

 The study is an attempt to investigate the effect of trade openness on manufacturing sector growth in Nigeria. Considering the importance ofthe manufacturing sector in creating output, employment and income, the study becomes very crucial at this stage in time when government are pursuing liberal policies aimed at opening up the economies. Using annual time series data ranging from 1981-2018, the study estimated a multiple regression model with growth of manufacturing output as the dependent variable and trade openness, exchange rate and inflation rate as the independent variables. The study established that trade openness has a positive relationship with manufacturing sector growth in Nigeria .The study also established the presence oflong run relationship between trade openness and growth in manufacturing output in Nigeria. With the aid ofeconometric techniques employed (unit root tests was employed). The following results were found that a stable long run relationship exist between the dependent and explanatory variables in the model, this means that the result ofthisfinding can be relied upon in taking long run policy decision. Base on the above observation sofar, we conclude thatpower generation capacity has significant impact on the Nigerian economic growth during this period of observation. The study recommends that the policy direction for the manufacturing sector in Nigeria shouldfocus more on open policies through trade liberalization as a long-term plan. Reduction in trade restrictions and implementation ofappropriate incentives are vitalfor resuscitating the performance ofthe sector.