Does Trade Promote Growth In Developing

International Journal of Development and Sustainability
Online ISSN: 2168-8662 – www.isdsnet.com/ijds
Volume 1 Number 3 (2012): Pages 743-753
ISDS Article ID: IJDS12092701
Special Issue: Development and Sustainability in Africa – Part 1

Does trade promote growth in developing countries? Empirical evidence from
Nigeria
Oluwasola Omoju 1*, Olumide Adesanya 2
1
2

National Institute for Legislative Studies, Abuja, Nigeria
Department of Business Administration University of Lagos Akoka-Yaba, Lagos, Nigeria

Abstract
This paper examines the impact of trade on economic growth using in Nigeria as a case study. Theoretical postulations assert the positive effect of trade on economic growth, but empirical evidences are inconclusive. While some studies find trade to be beneficial to all countries engaging in it, others argue that trade has only benefitted developed countries at the expense of less developed ones. Contributing to this argument is the core of this study.
This study makes use of the ordinary least square techniques to examine the effect of trade on economic growth in
Nigeria using data from 1980 to 2010. The result of the study shows that trade, foreign direct investment, government expenditure and exchange rate have a significant positive impact on economic growth in Nigeria. Based on the finding, we recommend that government should create an enabling environment that would facilitate trade and foreign direct investment. Efforts should also be geared towards improving expenditure and ensuring exchange rate stability.

Keywords: Trade, Growth, Developing countries, Nigeria
Copyright © 2012 by the Author(s) – Published by ISDS LLC, Japan
International Society for Development and Sustainability (ISDS)

Cite this paper as: Omoju, O. and Adesanya, O. (2012), “Does trade promote growth in developing countries? Empirical evidence from Nigeria”, International Journal of Development and
Sustainability, Vol. 1 No. 3, pp. 743-753.

*

Corresponding author. E-mail

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