International Trade as an Engine of Growth in Developing Countries: A Case Study of Nigeria

Abstract

This study examines international trade as an engine of growth in developing countries, a case study of Nigeria. A review of the literature reveals that countries that are more open to international trade tends to experience higher growth rate and per-capital income than countries who do not trade or closed economy. The primary objective of the study is to test the impact of international trade on economic development in Nigeria. In the paper, data were collected mainly from secondary sources, e.g. central bank of Nigeria(CBN) bulletin, federal office of statistics, etc. the test for the study is regression analysis, specifically the unit root test, error correction model (ECM) and the co-integration analysis. The study reveals that export is highly significant to international trade, since it is significant at both levels and first difference. In conclusion government should consider exporting more goods and services in order to promote international trade which is a veritable tool for economic growth of the Nigerian economy