Terms of Trade, Trade Openness and Government Spending in Nigeria

Rowland Obiakor, Andy Okwu and Emeka Akpa

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we estimated the short-run and long-run effect of terms of trade, trade openness and government spending in Nigeria from 1981 to 2019. Data for this study was sourced from the World Bank’s World Development Indicators (WDI), Central Bank of Nigeria’s (CBN) Statistical Bulletin, and FRED Economic Data. Using the ARDL estimation method, the study found that terms of trade do not significantly determine government spending in both the short-run and long-run. The short-run effect of trade openness on government was not significant, but its long-run effect was negative and statistically significant, confirming the efficiency hypothesis in the relationship between trade openness and government spending.

Keywords: Terms of trade; Trade openness; ARDL (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2021-09
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

Published in Nigerian Defence Academy Journal of Economics and Finance 2.5(2021): pp. 55-62

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:110977

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