International Journal of Research in Social Sciences
Year : 2018, Volume : 8, Issue : 7
First page : ( 87) Last page : ( 107)
Online ISSN : 2249–2496.

Impact of trade liberalization on manufacturing output in Nigeria (1980 – 2016)

Emerenini Fabian M.*, Ohadinma Chinyere M.**

*(Ph. D) Department of Economics, Imo State University, Owerri

**Doctorate Degree Student, Dept. of Economics, Imo State University, Owerri

Online published on 1 August, 2019.

Abstract

This research work focused on the impact of trade liberalization on the manufacturing sector of the Nigerian economy for the period 1980 to 2016. Trade liberalization deals with increasing breakdown of barriers and integration of the World market into a global economy. The inability of the manufacturing sector in Nigeria to grow beyond its present state despite the positive effects of globalization in the world economy is a very serious case for study. The research made use of secondary data from CBN statistical bulletin and the Error Correction Model approach was used to analyze the data. The model formulated used the manufacturing sector output as the dependent variable while trade openness, exchange rate, volume of exports/imports and balance of payment were the independent variables. The findings from the ECM analyses show that the short run effect of trade openness, exports and balance of payment have negative relationships with manufacturing output while the short run effects of exchange rate and imports exerts positive relationship with manufacturing output with only imports and exports being significant. The implications of these findings is that trade liberalization has not significantly improved the growth of Nigerian manufacturing sector. One major way of improving on Nigeria's trade liberalization policies is through promotion of policies that encourage local productions in order to enhance exports and as well open Nigeria's economy to foreign trade.

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Keywords

Trade Liberalization, Manufacturing Output, Error Correction Model, Trade Openness.

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