Dynamic Impact of Trade Openness on the Economic Growth in Nigeria
Sunday Elijah1, Ahmed Balarabe Musa2
1Sunday Elijah, Department of Economics, Federal University Gusau, Zamfara State, Nigeria Universiti Putra Malaysia, UPM Serdang, Selangor Malaysia.
2Ahmed Balarabe Musa, Department of General Studies, Nuhu Bamalli Polytechnic, Zaria, Kaduna State, Nigeria. and Universiti Putra Malaysia UPM Serdang, Selangor Malaysia.
Manuscript received on 01 September 2019 | Revised Manuscript received on 10 September 2019 | Manuscript Published on 23 September 2019 | PP: 609-222 | Volume-8 Issue-5C, May 2019 | Retrieval Number: E10870585C19/19©BEIESP | DOI: 10.35940/ijeat.E1087.0585C19
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: In theory, it was conforming to the accepted standard the open economies grow faster than the closed economies, and respectable economic development level could be achieved. This paper investigates the dynamic impact of trade openness on the economic growth in Nigerian economy between 1980 – 2016 empirically. Secondary data were sourced, from the 2016 Central Bank of Nigeria Statistical Bulletin’. The tests of diagnostic conducted are: cointegration test, unit root test and error correction model. The analysis result revealed the trade openness was found to have negatively impacted on the economic growth in both the short run and long run. Based on study findings, it is recommended that since the imports of the country are more than its export; the government needs to have the present efforts to sustain the diversification of the economy to achieve economic growth led by exports. Furthermore, the collaborative effort of government with private sectors should encourage the export substitute in the nation to discourage importation and promote export of primary commodities especially the ones that have absolute advantages to the nation. Lastly, the study also recommended that the government of the country should sustain the policy of Treasury Single Account (T.S.A) so as that the loopholes will be blocked in the private and public sectors of the nation, and also to make sure there is equity in the utilization of the revenue generated internally for the masses to benefit.
Keywords: Trade Openness, ARDL, Import, Export, Economic Growth. JEL Classification Codes: E30, F10, F14, F19, F49.
Scope of the Article: Computational Economics, Digital Photogrammetric