THE ROLE OF GL0BAL TRADE IN SHAPING NIGERIA'S ECONOMIC GROWTH TRAJECTORIES

Abstract

Due to advancements in technology that facilitates commerce, global trade has over time changed the economic progress of several nations. This study analyses the role of international trade in shaping Nigeria's economic growth path from 1990 to 2022. The analysis utilized the Ordinary Least Squares (OLS) method, incorporating exchange rate, imports of goods and services, exports of goods and services, and trade openness as determinants of international trade. The research employed secondary data sourced from notable institutions, including the World Bank, IMF, and CBN. The results of the analyses reveal that international trade and exchange rate have negative effects on economic growth in Nigeria. In contrast, exports and imports of goods and services exhibit positive effects on economic growth in the country. While the estimated relationships between international trade, imports and exports, and economic growth were found to be significant, the estimated relationship between exchange rate and economic growth was found not to be significant. From the findings of the study, it can be deduced that exports and imports of goods and services positively affect economic growth in Nigeria, while international trade in the country has not been positioned in a manner that it contributes meaningfully to economic growth. The study recommends that government should invest in education and research, as means to stimulate innovation, foster the development of new products and enhance competitiveness in international markets, while revitalizing and modernizing the country's agricultural sector.