Determinant of import: Effect of sectorial performance

Abstract

Given the risen import in Nigeria and the need to improve productivity of sectors. This study therefore looks at the determinant of imports using disaggregated Gross Domestic Product. ARDL technique was employed and data from 1981 to 2021. The results reveal the presence of short-run and long-run effects of sectoral performance on import in Nigeria. The findings show that increase in agricultural output, industrial output and service output leads to significant decrease in import while decrease in output of the sectors leads to significant increase in importation. This implies that development of these sectors will lead to reduction in importation. Population has positive and significant effect on import in the short run and long run. The study therefore recommends that government should encourage the development of these sectors in order to increase their productivity. Government should also establish strict policy that will discourage importation of goods produced within the country.