THE EFFECT OF TRADE AND FINANCE ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA
ABSTRACT
Several statistical approaches were implemented to carry out this research, in which Central Bank of Nigeria (CBN), Nigeria Institute of Economic Research (NISER), National Bureau of Statistics (NBS) were involved, information were adequately collected and analysed respectively. The purpose of the study is to evaluate the effect of trade and finance evaluates the effort of Nigerian economy on the on economic growth and development in Nigeria and its impacts on development.
The findings however, showed that trade and finance has a direct impact on the economic growth and development in Nigeria.
The philosophical and logical framework of this study is based on the”hypothesis that trade and finance plays veritable role in sustainable development- whether in the developed or growing economy. Both the controllable and non controllable variables were subjected to strict and critical analysis in line with the research question.
The findings of this work clearly showed that no nation can do without trade and commerce. Another interesting finding of the work is that finance enables and facilitates efficient and effective home and international trade thereby promoting sustainable economic development.
It is very instructive to point out that trade and finance impacts significantly to the wheel- of commerce. In summary therefore it is believed that the effect of trade and finance cannot be over-emphasized here due to the findings of this work which corresponds to previous findings of both the various authors and the statistical records of the Central Bank of Nigeria and World Bank respectively, which indicated that Nigeria with fast growing population will benefit greatly from the availability of sufficient capital and international trade.
CHAPTER ONE
1.0 Background Of The Study
This study is basically under taken to take an objective view of the impact of international trade, initially with predominately a grain product, but presently dominate by petroleum products. Since the discovery of oil in commercial quantity at Oloibiri in the present day Delta State, Nigeria has been an important player in world affairs, economically and other wise, particularly being the 6th largest producer of crude oil in organization of petroleum exporting counties (OPEC). Unfortunately, these blessing by nature to Nigerians didn’t reflect in total overall welfare of the citizen, made worse, by the collapse of world oil “market as a result of glut in 1981. For example, crude oil prices, which rose rapidly from 120.94 Dollars per barrel in 1979 to $36.95 Dollars in 1980 and $40.00 Dollars in 1981, fell to $ 29.00 in 1983 and low level $14.85 in 1986. (Anyanwu, Oyefusi, Oaikhenan 1997). Exchange receipt which rose form. $ 15.7 billion dollars in 1981, fell to $ 5.2 billion dollars. (Anyanwa etal).
The above does not mean that there have been absolutely no gain from Nigeria’s participation in the arena of international trade, the point is that the gains have been normal, not in real terms, because a nation where over 40% of the population live below poverty line, cannot be said to have prospered in real economic terms.
This study is going to take a position, whether Nigeria’s economic under development can be attributed to international trade or whether her relative economic prosperity, in -terms of growth and development can be attributed to her taking part in the field of international trade. In other words, how effectively has trade contributed to Nigeria’s economic growth and development? This is the important question which this study attempts to answer.
1.1 Statement Of Research Problem
The importance of international trade in the development process has been of interest to development economist and policy makers alike. Imports and exports are key part of international trade and the import of capital goods in particular is vital to economic growth.
This is so because imported capital goods directly affect investment, which in turn constitutes the motor of economic expansion. Economic refund is expected to affect imports as part of the strategy to restore external balance. However, unless policy makers know what the major components of import-are and how determine, such a policy decision can be harmful to investment if domestic production relies on imports.
In Nigeria, some people are in favour of protectionist and highly regulated economy and have even criticized the pervious Nigerian government, for signing treaty of the world Trade Organization (WTD), claiming that, Nigeria was not adequately represented in the negotiations and should push for a fairer deal. As regards to this statement, some people, particularly economists pushed for the implementation of the Structural Adjustment Programme (SAP) in 1986 which brought about deregulation of formerly regulated areas of the economy, so that the country could reap the benefit of economic openness.
The main thrust of this research is to take an objective view regarding the controversy of the role of international trade, in the progress of a country in terms of economic growth of Nigeria. It has been eluded ‘by the dissenting voices in the 21st century, that trade could be negative in terms of acting as a catalyst of economic growth and development, being a retrogressive force, in the journey to Economic independence. But ironically, past experience has proven the potency of trade as a catalyst of economic progress, w.ith regards to growth and development.
1.2 Purpose Of The Study
International trade has, by and large, been an “engine of growth” for global economy. But there have been large disserting voices in the 21st century, claiming that international trade only perpetuates the under-development of poor countries due to the fact that there are disproportionate shares of gains from trade that accrues to industrialized centuries. This research work focuses on, the following objectives:
- To examine the impact of international trade on the economic growth of Nigeria.
- To determine the extent to which trade policies have impacted on the growth process of Nigerian economy.
- To assess the trade policies of Nigeria over the years
- To evaluate the trade and exchange reforms in Nigeria over the years.
- To identify the factor that hinders the international trade progress of Nigeria and make suggestion on how they could be resolved.
1.3 Research Questions
The research questions, which guide this research work, are as follows:
- Does international trade stimulate economic growth in Nigeria?
- To what extent does the exchange rate impact on the growth process in Nigeria?
- Does external reserve of the country affect it economic growth?
- What are the factors that hinder international trade in Nigeria?
1.4 Significance Of The Study
This study makes use of the econometric procedure in estimating the relationship between international trade components and economic growth in Nigeria. The Ordinary Least Square (OLS) technique is employed in obtaining the numerical estimates of the coefficient in different equations.
Ordinary Lease Square (OLS) method is chosen because it possesses some optimal properties: its computational procedure is fairly simple and it is also an essential component of most other estimate techniques. The estimation period covers the last thirty-nine years since the data needed are available for this period. The data for this study are obtained mainly from secondary sources, particularly Central Bank of Nigeria (CBN) publications.
Model Specification
GDP = ao+a1 Imp + 92 open + Ui
Where
- GDP = Gross Domestic Product
- Imp = Volume of Import
- E open = Economic Openness (Expressed as (import + export I gdp)
- ao, a1 and a2·- parameters
- Ui = Error term
A’ Priori Expectation
ao>O; a1 <0 and a2 <0 or a2 >0
The constant is expected to be positive because there are number of other factors which determine the gross domestic product aside the ones stated in model. It is a fact in macro economics theory that import is a withdrawal from the economy and so, is expected to impact negatively on economic activities in the country.
The effect of economic openness is based on the principle .of comparative advantage by David Ricardo, which advocates specialization and exchange of goods and services among nations. The economic specialization could either be positive or negative depending on the values of export, import and the gross domestic product. If the values of the export and gross domestic product outweigh the value of import, then economic openness would affect economic growth positively and vice-versa.
MODEL II
- Gdp = bo + b I Exp + b2 open + ui
- Where gdp = gross domestic product
- Exp = volume of export
- E open = Economic openness (Expressed as (import +export)
- b0, b l and b2 = parameters
- Ui = error term
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Effect of Trade and Finance on Economic Growth and Development in Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
Disclaimer for Complete Material Utilization
The displayed research work titled "The Effect of Trade and Finance on Economic Growth and Development in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “African Union and Resolution of the Post 2010-2011 Election Crisis in Cote D’Ivoire” be used as a guide for Political Science Project?
Yes it can be used — Cote d’ivoire in the west African sub-region, recently faced political crisis that emanated from the presidential election that was conducted in October 2010, this present unique features of armed conflicts that aroused the interest of international community such as the United Nations, ECOWAS, African Union, France etc in the country’s peace process. African Union, a defunct of the Organization of African Unity (OAU) was created to handle the issue of resolving conflicts in the African continent to maintain and promote African unity. The AU was able to set up the Peace Security Council and Wise Men Panel to oversee the conflict situation in Cote d’ivoire. This study posits that the post election crisis of 2010/2011 is a watershed of the …
Can this topic “Design and Implementation of a Computerized Recycling System” be used for Computer Science (CS) Project?
Yes it can be utilized for research — Computerized recycling system is an application system that provides information about recyclable materials, which are separated from the waste stream collected and managed on site. The aim of the study is to design and implement a Computerized Recycling System for Protecting the Green Environment. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will reduce environmental pollution caused by plastics materials, paper and cans and also soil pollution and provide income for the end-users of the system through the sale of materials assumed to be waste products. The motivation that led to the implementation of the proposed system is that communities endure a huge amount of waste and this has …
Is the topic “Privatization of Public Enterprises Its Effect on Consumer in Nigeria” recommended for Public Administration (PA) Project?
Yes it is highly recommended — This study has focused on privatization of state owned enterprises in Nigeria. A case study of Nigeria Telecommunication (NITEL). The major problem stem from inadequate and irregular finding, political interference in operations. The data collection instrument used was the primary and secondary data, two statistical tools were used for evaluating the finding of the study the simple percentage for analyzing the respondents and chi-square (X2) for testing the hypothesis. This study is in five chapters viz: The introduction, literature review, research methodology, data presentation, analysis and interpretation, summary, conclusion and recommendation. Majority of the respondent’s response that privatization has brought more efficiency and also that privatization policy of NITEL has contributed to the morale of the workers and employee productivity. It is also …
Can the material for “Social Vices in Contemporary Nigerian Poetry Images” be used as a guide for English Language Project?
Yes it can be used — As a result of social vices in our immediate environments this research work aims at bringing out how contemporary writers have reacted to the bad happening in the society, especially using Denja Abdullahi’s Mairogo and Jide Balogun’s The Desert in the river using sociological theory to investigate social vice that were present in the two texts and it is discovered that poetry is used as a means of achieving an egalitarian society. …
Can the material for “Application of Seamanship in Maritime” be used as a guide for Maritime and Transport Project?
Yes it can be used — Seamanship is the art, knowledge and competence of operating a ship, boat or other craft on water. The study was conducted to evaluate the application of seamanship in maritime using Nigeria ports as a case study. In achieving this aim, the following specific objectives were laid out to investigate the factors affecting the application of seamanship in Nigeria maritime ports and find out if the application of seamanship in maritime industry increases productivity in Nigeria ports. Seamanship in maritime problems have a way of showing up when an individual least expect them, and the Boat problems don’t come much more alarming than turning your ignition key and hearing nothing. The majority of small boats make use of mechanical cable shifts, …
Can the material for “Prudential Guidelines and Management of Debt in Nigerian Banks” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — This research examines Prudential Guidelines and Management of Debts in Nigerian Banks. In carrying out this study for questionnaire were used to collect data from respondents. The random sampling method was adopted in selecting the study participants. The study revealed that commercial banks use collateral securities as a necessity for granting credit facilities. This study also revealed that problems such as the adoption of these prudential guidelines have significance on the management of dept in commercial banks. The study further revealed that the above mentioned problems can be mitigated by critically and specifically examining ways debts are revealed in Nigeria commercial banks. The study recommends among others that it necessary for the lending officer of the bank to be firm …
Can this topic “Design and Implementation of an Online Job Seeking Platform” be used for Computer Science (CS) Project?
Yes it can be utilized for research — Online job seeking applications become the most useful tools to access the information about job applicants and job applications are accessible at the press of a button. The aim of the study is to Design and Implement an Online Job Seeking Platform. In achieving this aim, the following specific objectives were laid out as follows to design and develop an application software that will Allow job seekers to search and select the availability of jobs suitable for their needs and create a quick search and advance search that the user will use during the recruitment process. The motivation that led to the implementation of the proposed system is that applicants are increasing day by day, and are putting in their …
Can the material for “Design and Implementation of a Peer to Peer Network for File Sharing” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Peer-To-Peer network is a type of network in which each workstation has equivalent capabilities and responsibilities which differs from client/server architectures, in which some computers are dedicated to serving the others. The main aim of this study is to design and implement a peer-to-peer computer network for Socsmait office. In achieving this aim, the following specific objectives were laid out to design and develop an application software that will: enable communication between two or more computers on the network, allow the computers in the network communicate without the need for a central server, allow the computers connected in the network perform the function of both a server and a client on the network i.e. they are given the administrative right …
Can the material for “The Role of Reward and Punishment on Student’s Academic Performance in Some Selected Secondary Schools” be used as a guide for Education Project?
Yes it can be used — This project work is the role of reward and punishment on student’s academic performance in some selected secondary schools in Oredo local government area of Edo state. In order to carryout the study, the researcher formulates research questions. A questionnaire made up of 20 items was used to elicit responses from the respondents. The population of the study consisted of students from selected secondary schools in Oredo local government area. The data was analyzed using a simple percentage. Discussion of results that emerged from the study revealed that there is high level of student’s population who takes to punishment as a habit. That majority learnt the act of punishment from their peer group etc. Based on the discussion of result, useful …
Is the topic “Design and Implementation of an Airline Luggage Price Determination System” recommended for Computer Science (CS) Project?
Yes it is highly recommended — Luggage billing device is an instrument, which is used in determining the weight of object placed on its load cell. The aim of the study is to Design and Implement an Airline Luggage Price Determination System. In achieving this aim, the following specific objectives were laid out as follows to design and develop an application software that will keep luggage billing records of all incoming and outgoing immigrants, verify and give accurate bill for airline passenger luggage through the use of an internet accessible device and handle any luggage weighing objects and consequently requires the bill of airline passenger’s weight luggage. The motivation that led to the implementation of the proposed system is that the existing system is manual, this …