ABSTRACT
There has been a long held belief that there is a positive relationship between economic growth and increased levels of foreign trade. Therefore, this study has empirically examined the impact of impact foreign trade on economic growth in Nigeria for the period 1980 to 2017.
Using foreign direct investment, value of import and export trade and exchange rate to proxy foreign trade, the ordinary least squares technique was employed to estimate the impact of foreign trade on Gross Domestic Product. The analysis was based on data extracted from World Bank data and Central Bank of Nigeria Statistical Bulletin.
Finding from the study showed that showed that exchange rate and total foreign trade are positively related to GDP, while foreign direct investment has a negative influence on GDP. Based on the empirical results FDI have a potential to create growth and expansion of infrastructure in the Nigerian economy.
It is concluded that foreign trade has significant impact on economic growth of Nigeria. Therefore, the study recommends that policy makers should adopt policies on trade liberalization such as reduction of non-tariff barriers, reducing tariffs, reducing or eliminating quotas that will enable the economy to grow at spectacular rates.
TABLE OF CONTENTS
CHAPTER ONE: Introduction
1.1 Background to the study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope of the Study
1.7 Justification for the Study
CHAPTER TWO: Literature Review
2.1 Conceptual Review
2.1.1 Concept of Foreign Trade
2.1.2 Trade Polices and Foreign Trade in the Nigerian Context
2.1.3 Economic Growth
2.2.1 Classical Theory of Trade
2.2.2 The Theory of Factor Proportion
2.2.3 The Product Life Cycle Theory
2.2.4 Neoclassical Growth Theory
2.2.5 Endogenous Growth Models
2.3 Empirical Review
2.3.1 Impact of Foreign Trade on Economic Growth of Developing Countries
2.3.2 Impact of Foreign Trade on Economic Growth of Developed Countries
2.3.3 Impact of Foreign Trade on Economic Growth of Nigeria
CHAPTER THREE: Methodology
3.1 Research Design
3.2 Source of Data
3.3 Model Specification
3.4 Method of Data Analysis
CHAPTER FOUR: Data Presentation and Analysis of Result
4.0 Introduction
4.1 Restatement of Model
4.1.1 Data Presentation
4.2 Results and Discussions
CHAPTER FIVE: Summary, Conclusion and Recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
Appendix
