Impact of trade liberalisation on Nigeria economic growth from 1980-2013

mso-fareast-font-family:"Times New Roman"">ABSTRACT

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color:#231F20">This research work studies the international competitiveness of
the Nigerian economy in the global market by analyzing the relationship between
trade liberalization and economic growth in Nigeria. Using time-series data
over the period 1980-2013, the study focus on instabilities in regime, trade
policy, and exchange rate using both single and system estimation techniques. A
non-monotonic and an ANCOVA econometric models are postulated in  order to capture the structural pattern of
the relationship between trade liberalization and economic growth as well as
the policy effect of structural Adjustment program (SAP). The result shows that
there is an inverted U-shape (no-monotonic) relationship between trade liberalization
and economic growth in Nigeria and the optimum degree of openness for the
economy is estimated to be about 67%. Also, the liberalization policy of the
SAP has positive economic effect on the output growth. Trade policy has been a
very contentious issue in the development of Nigeria.. The study recommends that
policymakers in Nigeria can reduce macroeconomic instability and vulnerability
to shocks by diversifying the export structures as well as increasing export.