 Trade Openness and Manufacturing Sector Performance in NigeriaOkon J. Umoh and Ekpeno Effiong Margin: The Journal of Applied Economic Research, 2013, vol. 7, issue 2, 147-169 Abstract: How important is trade openness as a vehicle for driving productivity in developing countries? We offer a sector-specific analysis with focus on the manufacturing sector for meaningful policy insights. Using a modern econometric technique—the autoregressive distributed lag approach to cointegration—this article attempts to establish the relationship between openness to trade and manufacturing performance in Nigeria for the period 1970–2008. The results suggest that trade openness has a significant positive impact on manufacturing productivity in Nigeria both in the short and long run. These coefficient estimates are robust and stable over the time. Therefore, the policy direction for the manufacturing sector in Nigeria should focus more on open policies through trade liberalisation as a long-term plan. Reduction in trade restrictions and implementation of appropriate incentives are vital for resuscitating the performance of the sector. In this aspect, policy-makers should leverage the benefits of openness to the comparative advantages in the liberalised sector. JEL Classification: F41, C22, O55 Keywords: Trade Openness; Manufacturing Growth; Cointegration; Autoregressive Distributed Lag; Nigeria (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:7:y:2013:i:2:p:147-169 Access Statistics for this article More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.