Journal
COGENT ECONOMICS & FINANCE
Volume 9, Issue 1, Pages -Publisher
TAYLOR & FRANCIS AS
DOI: 10.1080/23322039.2020.1868686
Keywords
Trade openness; Economic growth; institutional quality; Nigeria
Categories
Ask authors/readers for more resources
The study finds that export trade in Nigeria has a significant positive impact on economic growth, while the impact of import trade is negative and significant. Improving institutional quality can reduce the negative impact of import trade on economic growth, which has important policy implications for Nigeria.
This study attempts to fill the prior knowledge gap in the nexus between trade openness and economic growth in Nigeria by incorporating the role of institutional quality. The study covers the period from 1984 to 2017 and employs three indicators of trade openness including total trade, import trade, and export trade. Cointegration among the variables is examined using the ARDL bounds testing approach. The results provide evidence of a long-run relationship among the variables. The estimates suggest that export trade has a significant positive impact on economic growth while the impact of import trade on economic growth is negative and significant. The results also show that the negative long-run effects of import trade on economic growth in Nigeria decreases as institutional quality (quality of governance) improves. These empirical results have important policy implications for Nigeria. Among others, this study highlights the needs to improve the quality of governance in the country. Good governance and quality institutions can help channel the dividends of trade openness into growth-enhancing activities.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available