Trade Openness and Economic Growth in Nigeria: Further Evidence on the Causality Issue
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Date
2004
Authors
Saibu, Olufemi Muibi
Journal Title
Journal ISSN
Volume Title
Publisher
South African Journal of Economics and Management Sciences
Abstract
The study specifically investigated the causality between the openness variable and economic growth, using data from the Nigerian economy. Previous studies in Nigeria have interpreted the regression results of output variables on the export trade variable as providing support for trade liberalization as an engine for growth with less emphasis on other measures like import. Such an interpretation is questionable since these regressions provided no means for determining the direction of causality. This paper performed causality tests with various forms of openness measures and economic growth. The results indicated a unidirectional relationship between openness and growth. This shows that an increasing level of openness will be beneficial, depending on the level of economic development in Nigeria. The result is robust across different measures of openness and analytical techniques.
Description
Keywords
Economic growth, Trade openness, Liberalization
Citation
Saibu M.O. (2004) “Trade Openness and Economic growth in Nigeria: Further Evidence on Causality Issue”. South African Journal of Economics and Management Sciences (SJEMS)Vol.7 no.Pp.2 115- 131, South Africa