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The Nexus between Trade Openness and Economic Growth in Nigeria

Atayi Abraham Vincent, Nkire Nneamaka Loretta, Akanmu Ayodeji Abiola and Ojo Bunmi Augustina

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Vincent, A.A., Loretta, N.N., Abiola, A.A. and Augustina, O.B., 2021. The Nexus between Trade Openness and Economic Growth in Nigeria. United International Journal for Research & Technology (UIJRT), 2(7), pp.212-218.

Abstract

The effects of trade openness on Nigerian economic growth were investigated in this study. From 1987 to 2018, data was gathered. The magnitude of the relationship between the variables was investigated using a Vector Error Correction Model (VECM). The study found that trade openness has a significant positive effect on Nigerian economic growth, and that there is a significant positive long-run relationship between trade openness and economic growth in Nigeria at a significant rate of 5%.The study Recommends, among other things, that the government achieve an optimum degree of economic transparency. The government should improve market performance, reduce price distortions in the market, and boost the economy’s competitiveness. This would improve access to global markets, promoting capital inflow and trade expansion.

Keywords: Trade Openness, Economic Growth, VECM and Nigeria.

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