Summary of
Findings
This
research work evaluates the impact of international trade on the economic
growth of Nigeria within the period; 1970-2007. To examine the impact of
international trade on Nigeria’s economic growth, international trade was
captured with
Export (EXPT), Import (IMPT), Exchange Rate (EXR) and Interest Rate (INT)R
while economic growth was captured with Gross Domestic Product (GDP).
Considering
the statistical techniques employed, the following results were obtained;
(i)
International
trade has significant impact on economic growth in Nigeria within the period under study; 1970-2007.
(ii)
The entire regression plane is
statistically significant. This means that the joint influence of the
explanatory variables (EXP, IMPT, EXR and INTR) on the dependent variable (GDP)
is statistically significant;
(iii)
The
computed coefficient multiple of determination (R2 =0.872500) shows that 87.25% of the
total variations in the dependent variable (GDP) is influenced by the variation
in the explanatory variables namely Export (EXPT), Import (IMPT), Exchange Rate
(EXR) and Interest Rate (INT)R while 12.75% of the total variation
in the dependent variable is attributable to the influence of other factors not
included in the regression model.
(iv)
There is
presence of positive first-order serial correlation (autocorrelation) in the
model.
Conclusion
International trade and economic growth cannot be
over-emphasized in the economics of development. In the light of this, effort
was made to evaluate the impact of international trade on the Nigeria's
economic growth from 1970-2007. With the aid of recent revamping financial and
economic policies, International trade has witnessed a significant growth in
Nigeria.
However, international trade often requires
supporting investments in distribution and marketing facilities. Improved transportation
and communications permit multinational firms to spread production according to
each country’s comparative of advantage. Thus, many foreign investments
increase imports and exports. Countries frequently accompany international
trade and foreign direct investment. Consequently, International trade is an
important main element of the growing interdependence of the world’s economics
commonly referred to as globalization.
Policy Recommendations
Sequel to the researcher’s findings, the following
recommendations are presented:
·
There is
need for LDCs especially Nigeria to create room for foreign investment with
more advanced technology so that they could register increases in the rate of
innovation thereby leading international trade growth.
·
Nigerian
government should embark on trade liberalization policies which encourage trade
openness and equally benefit Nigeria's economic growth.
·
Import
substitution strategies should be adopted by the government so as to restrain
excess import. This will help Nigerians to improve on export drive. Thus,
increasing international trade relationship Nigeria and other countries.
·
CBN
authority should undertake monetary policies which will favour international
trade between Nigeria and other countries.
·
The idea
of consuming nation should be discourage as government empower producers
through provisions of subsidies. This will as well help to boost the marginal
propensity to produce. Thereby, increasing the stock of goods for international
trade.