International trade as a catalyst for achieving economic growth in Nigeria

Abstract

This study examined the empirical examinations about the impact of international trade on the economic growth in Nigeria. The study has furnished a good understanding of the position of impact that both import and export as well as other variables used in the study has on the expansion of Nigeria’s economy. The study covered the period of 1981 to 2022 and time series data obtained from CBN were used. The econometrics tools used in this study include; Unit Root Test, Cointegration Test and Error Correction Model which were used to determine the position of impact that one variable has on the other. The result arising from our findings indicates that Total Import positively and significantly impacted on the growth of Nigeria’s economy for the period under review. It was also shown in the result that export and exchange rate have positive and insignificant impact on RGDP. The Foreign Direct Investment has negative but insignificant impact on the economic growth in Nigeria. International trade is significant in determining Nigerian economic growth. Based on the findings from this explorable paper, it was recommended that the federal government should encourage the importation of standard raw materials that will promote the exportation of locally produced goods which will meet the international standard in order to promote favourable balance of payment.