Abstract: This study examined the effect of foreign trade on economic development in Nigeria from 1980 to 2016. In other to achieve set objectives, yearly dataset of these dependent variables –economic growth (EGR), poverty level (POV), and human development index (HDI), while net export (NXP), trade openness (TOP),exchange rate (EXR) and ease of doing business (EDB) ranking served as independent variables. For evaluation, ARDL sufficed. The study showed EDB has a negative and a substantial outcome on EGR, positive and significant relationship with unemployment. EXR relationship with unemployment is positive and statistically significant and also owns a decisive and a compelling on human development. Net export has negative and a substantial impact on unemployment in Nigeria. For every unit deterioration in EDB ranking, economic growth rate drops by -0.11 %. However, for every unit deterioration in EDB ranking, 0.37 % of Nigerians become unemployed, adding to the unemployment rate. Every unit increment in EXR hikes unemployment rate by 0.15%, whereas an upswing in EXR improved Nigeria's human development index by 0.003%. None of the explanatory variables had a substantial on poverty. Stemming from these findings, the following suggestions to government became necessary: Put machinery in place to drive the ease of doing business ranking of Nigeria from 169th to the 50th position within 5years. Provide steady and adequate electrical power supply. Invest 5% of GDP in its agriculture and value chains for exports and local consumption. Play in the chocolate market, not cocoa beans market. Play in thousands of products from refined crude oil than selling crude oil. Process 50 % of Nigeria's crude in Nigeria into a plethora of products using small refineries for local consumption and export refined and other value-added products to African countries. Stabilise the Naira by all means necessary. Finally, legislate Nigeria's development plans such that successive governments would focus on it until all objectives are realised before starting another plan.
Keywords: Foreign Trade, EGR, POV, HDI and Ease of doing Business.
Title: FOREIGN TRADE AND ECONOMIC DEVELOPMENT IN NIGERIA, 1980-2016
Author: EGBUCHE, Anthony Aniegboka, Kalu, Ijeoma E., Otto, Godly
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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