TRADE DIVERSIFICATION AND ECONOMIC GROWTH IN NIGERIA: AN AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) APPROACH
Shettima, Fatima Abdullahi Ph.D , Farouq, Fatima Umar and Mallam, Abdullahi
Volume 2 Issue 2
Abstract
The paper examines the impact of trade diversification on economic growth in Nigeria spanning the period 1990 - 2020. The relationship between trade diversification and economic growth has been intensively researched, with conflicting and inconclusive results. This study uses the Autoregressive Distributed lag (ARDL) Model techniques for the period 1990 - 2020. The empirical estimated results show evidence that there exists a long-run cointegration among the variables. The empirical findings further depict that trade diversification has a significant positive impact on economic growth in Nigeria. Moreover, this study demonstrates a positive and significant complementary relationship between export diversification, domestic investment and exchange rate in strengthening economic growth. The paper recommends that policymakers should develop and execute trade laws that are aimed at regulating various sources of import and export in the country. Keywords: Trade Diversification, Economic Growth, Domestic Investment, Exchange Rate
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