The Relationship between Trade Openness and Economic Growth in Nigeria from 2000 to 2020

Moses Aondohemba Tyokosu and Nicholas Abakpa
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Moses Aondohemba Tyokosu: Benue State University, Makurdi
Nicholas Abakpa: Benue State University, Makurdi

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 11, 1766-1778

Abstract: The study aimed to explore the relationship between trade openness and economic growth in Nigeria from 2000 to 2020, utilizing an ex-post facto research design. Secondary data was collected from the Central Bank of Nigeria Statistical Bulletin for the year 2022, and data analysis was conducted using SmartPLS 12.1 software, which is suitable for time series regression analysis. The findings of the study reveal that there is no significant relationship between export and both gross domestic product (GDP) and per capita income in Nigeria during the specified time frame. Similarly, the study indicates that there is no significant impact between foreign direct investment (FDI) and both GDP and per capita income in Nigeria. However, it was demonstrated that import significantly affects both the gross domestic product (GDP) and per capita income (PCI) in the country. This suggests that the influx of imports plays a more substantial role in influencing Nigeria’s economic growth during the review period. Based on the above findings, the study establishes that trade openness has a significant impact on the economic growth of the Nigerian economy, with the exception of export and foreign direct investment (FDI). It emphasizes the need for the Nigerian government to address security challenges posed by Boko Haram insurgency, Bandits, and Fulani Herdsmen activities. By ensuring a secure and stable environment, the country can attract both foreign and domestic investors, fostering economic development. The study also recognizes the vast potential in the agricultural sector and advocates for revitalizing agriculture in Nigeria. By prioritizing agricultural development, the country can create more job opportunities, enhance food security, and increase its export capabilities, contributing to overall economic growth and stability.

Date: 2023
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