TRADE, FINANCIAL LIBERALISATION AND CURRENT ACCOUNT BALANCE IN NIGERIA
Bosede Kudaisi ()
Oradea Journal of Business and Economics, 2022, vol. 7, issue special, 36-50
This paper examines the individual and interactive impacts of trade and financial liberalization on Nigeriaâ€™s current account balance between 1986 and 2019. An autoregressive distributed lag technique is used to investigate the short- and long-run effects of the de facto measure of trade openness and the de jure measure of financial openness by Chinn-Ito on the current account. The finding suggests that financial liberalization, in particular, has an insignificant negative effect on the current account, whereas trade has a non-significant positive impact in the long-run. The interaction of the variables in the long-run produces significant positive influence on the account. The short-run effects show a positive impact of financial liberalization, whereas the interplay of the variables has a negative impact on the current account. The study concludes that the interaction of trade and financial liberalization is critical in improving the current account balance in Nigeria.
Keywords: Trade openness; Financial liberalisation; Current account; Nigeria; ARDL (search for similar items in EconPapers)
JEL-codes: F32 F36 F62 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:7:y:2022:i:special:p:36-50
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