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Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Document Type

Article

Publication Date

Spring 2017

Abstract

Views differ on the impact of international trade on economic growth in developing countries. Whilst some scholars on the subject uphold the view that international trade leads to economic growth based on empirical evidence, others, albeit, in the minority, express a dissenting opinion.

This paper looks at the contribution of international trade to economic growth in Nigeria, a developing country, and establishes a nexus between international trade and economic growth. The variables considered are real GDP, a proxy for economic growth, export volumes, import volumes, trade openness, gross capital formation and exchange rate as independent variables. Augmented Dickey-Fuller (ADF) test was used for the unit root test and the variables were found to be stationary at levels. Granger Causality was also deployed to test the causality between the dependent and independent variables and an unidirectional relationship was established for some of the variables. The results reveal that there is, overall, a positive relationship between economic growth and international trade.

Comments

This paper is a winner of the 2017 Booth Library Awards for Excellence in Student Research and Creative Activity

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