Disaggregated Impact Analysis of Trade on Growth: The Role of Financial Openness in Nigeria
Beatrice Onawunreyi Omo-Ikirodah
Economics Department, University of Benin, Nigeriahttps://orcid.org/0000-0002-0012-6768
Resumen
This paper decomposes and estimates the impact of foreign trade on economic growth and evaluates the relevance of financial openness in the relationship in Nigeria using annual time series data between 1987 and 2020. The key findings of the paper are that although trade positively drives economic growth, the effect is due largely to the contribution of the non-oil export component in the long run and short run. This, however, does not rule out the fact that non-oil import over the long run and short run or the overall value of import in the long run lead to a high economic growth in the economy provided higher degree of financial openness is tolerated. In that, subject to broadening the scope of financial openness, Nigeria’s participation in international trade will result in rapid economic growth both in the long run and short run.
Palabras clave:
export, financial openness, growth, import, oil, tradeAgencias de apoyo
Citas
Adams, S., & Klobodu, E.K.M. (2017). Capital Flows and Distribution of Income in Sub-Saharan Africa. Economic Analysis and Policy, 55, 169-178. https://doi.org/10.1016/j.eap.2017.05.006
Crossref
Google Scholar
Aremo, A.G., & Arambada, O.D. (2021). Effect of Trade Openness and Financial on Economic Growth in Sub-Saharan African Countries. African Journal of Economic Review, 9(1), 109-130. Google Scholar
Arodoye, N.L., & Iyoha, M.A. (2014). Foreign Trade-Economic Growth Nexus: Evidence from Nigeria. CBN Journal of Applied Statistics, 5(1), 121-141. Google Scholar
Ekpo, A.H., & Egwaikhide, F.O. (1994). Export and Economic Growth in Nigeria: A Reconsideration of the Evidence. Journal of Economic Management, 1(1), 100-118. Google Scholar
Fajana, O. (1979). Trade and Growth: The Nigerian Experience. World Development, 7, 73-78.
Crossref
Google Scholar
Fosu, A.K. (1990). Exports and Economic Growth: the African Case. World Development, 18(6), 831-835.
Crossref
Google Scholar
Giles, J.A., & Williams, C.L. (2000). Export-Led Growth: a Survey of the Empirical Literature and Some Non-Causality Results. Journal of International Trade and Economic Development, 9(3), 261-337.
Crossref
Google Scholar
Gokmenoglu, K., & Taspinar, N. (2015). The Relationship Among International Trade, Financial Development and Economic Growth: The Case of Pakistan. Procedia Economics and Finance, 25, 489-496.
Crossref
Google Scholar
Grossman, G.M., & Helpman, E. (1990). Trade, Innovation and Growth. The American Economic Review, 80(2), 86-91. Google Scholar
Hallaert, J. (2010). Increasing the Impact of Trade Expansion on Growth: Lessons from Trade Reforms for the Design of Aid for Trade. OECD Trade Policy Working Papers, No. 100, OECD Publishing. https://doi.org/10.1787/5kmbphgwkl46-en
Crossref
Google Scholar
Iyoha, M.A., & Adamu, P.A. (2011). The Impact of External Trade on Economic Growth in Nigeria: A Roadmap for the Twenty-First Century. West African Social and Management Sciences Review, 2(1). Google Scholar
Iyoha, M., & Okim, A. (2017). The Impact of Trade on Economic Growth in ECOWAS Countries: Evidence from Panel Data. CBN Journal of Applied Statistics, 8(1), 23-49. Google Scholar
Kong, Q., Peng, D., Ni, Y., Jiang, X., & Wang, Z. (2020). Trade Openness and Economic Growth Quality in China: Empirical Analysis using ARDL Model. Finance Research Letters. https://doi.org/10.1016/j.frl.2020.01488
Crossref
Google Scholar
Leitao, N.C. (2012). Economic Growth, Globalization and Trade. Knowledge Management Research and Practice, 4(3), 18-24. Google Scholar
Malefane, M.R., & Odhiambo, N.M. (2018). Impact of Trade Openness on Economic Growth: Empirical Evidence from South Africa. International Economics, 71(4), 387-416. Google Scholar
Mankiw, N.G., Romer, D., & Weil, D.N. (1992). A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107(2), 407-437. Google Scholar
Mankiw, N.G., Romer, D., & Weil, D.N. (1994). A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107, 407-437.
Crossref
Google Scholar
Marshall, A. (1890). Principles of Economics. 8st ed. Macmillan, London (1920 [repr. in 1974]). Google Scholar
Moyo, C., & Khobai, H. (2018). Trade Openness and Economic Growth in SADC Countries. Munich Personal RePEc Archive, 84254. https://mpra.ub.uni-muenchen.de/84254/ Google Scholar
Musila, J.W., & Yiheyis, Z. (2015). The Impact of Trade Openness on Growth: The Case of Kenya. Journal of Policy Model, 37, 342-354.
Crossref
Google Scholar
Narayan, P.K. (2004). Reformulating Critical Values for the Bounds F-statistics Approach to Cointegration: An Application to the Tourism Demand Model for Fiji. Department of Economics. Monash University Discussion Papers. https://doi.org/10.4225/03/5938abda7b4ab Google Scholar
Obadan, M.I., & Okojie, E.I. (2010). An Empirical Analysis of the Impact of Trade on Economic Growth in Nigeria. Jos Journal of Economics, 4(1), 13-31. Google Scholar
Ogbokor, C.A., & Meyer, D.F. (2017). An Assessment of the Relationship between Foreign Trade and Economic Performance: Empirical Evidence from South Africa. International Journal of Economics and Finance Studies, 9(1), 1309-8055. Google Scholar
Redding, S. (1999). Dynamic Comparative Advantage and the Welfare effects of Trade. Oxford Economic Paper, 51(1), 15-39.
Crossref
Google Scholar
Todaro, M.P., & Smith, C.S. (2014). Economic Development. 12th Ed. New York: Addison- Wesley. Google Scholar
Wacziarg, R. (2001). Measuring the Dynamic Gain from Trade. World Bank Economic Review, 15(3), 393-429.
Crossref
Google Scholar
Were, M. (2015). Differential Effects of Trade on Economic Growth and Investment: A Cross – Country Empirical Investigation. Journal of African Trade, 2, 71-85.
Crossref
Google Scholar
Yanikkaya, H. (2003). Trade Openness and Growth: A Cross Country Empirical Investigation.
Crossref
Google Scholar
Journal of Development Economics, 72, 57-89. Google Scholar
Yelwa, M., & Diyoke, K.O. (2013). An Empirical Investigation of Export - Led Growth Amongst Google Scholar
Some Selected ECOWAS Countries: An Alternative to Foreign Domestic Investment? Economic Google Scholar
Journal of Management Sciences and Economics, 1(1), 30-48. Google Scholar
Young, A. (1991). Learning by Doing and the Dynamic Effects of International Trade. Quarterly
Crossref
Google Scholar
Journal of Economics, 106(2), 369-405. Google Scholar
Zahonogo, P. (2016). Trade and Economic Growth in Developing Countries: Evidence from
Crossref
Google Scholar
Sub-Saharan Africa. Journal of African Trade, 3, 41-56. Google Scholar
Economics Department, University of Benin, Nigeria
https://orcid.org/0000-0002-0012-6768
Licencia
Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial-SinDerivadas 4.0.
An Author declares that his paper has not been published before (under the same or another title, or is a part of another publication) and does not infringe copyrights of other persons**. At the same time, the Author transfers to the Publisher the exclusive right to publish and to circulate this work in print in the form of a non-serial journal publication and in a form of an electronic publication.
The journal is available on Creative Common license CC-BY-NC-ND