DETERMINANTS OF IMPORT IN NIGERIA

Table of Contents

CHAPTER ONE 3

1.0 INTRODUCTION 3
1.1 BACKGROUND TO THE STUDY 3
1.2 STATEMENT OF THE PROBLEM 7
1.3 OBJECTIVES OF THE STUDY 7
1.4 RESEARCH QUESTION 8
1.5 STUDY HYPOTHESES 8
1.6 SIGNIFICANCE OF THE STUDY 8
1.7 ORGANISATION OF THE STUDY 9

CHAPTER TWO 10
2.0. LITERATURE REVIEW 10
2.1. CONCEPTUAL ISSUE 10
2.2.1. THE GROWTH OF IMPORTS IN NIGERIA 12
2.2.2. TRADE POLICY TRENDS AND OBJECTIVES 13
2.2.3. SAP AND TRADE PERFORMANCE 14
2.2.4. TREND IN IMPORT CONTROL MEASURES 15
2.2.5. STYLIZED FACTS ON TRADE POLICIES, OIL PRICES AND IMPORT 18
2.2.6. IMPORT DEMAND THEORIES AND MODEL 19
2.2.7. SAVING, INVESTMENT, AND THE BALANCE OF TRADE: 23
2.2.8. MORE DEBATES ON THEORIES OF IMPORT DEMAND 24
2.2.9. Demand and the Demand Curve 25
2.3.0. Gross domestic product: 26
2.3.1. Exchange Rate Systems: 30
2.3.2. Consumer Price Index (CPI): 34
2.4 EMPIRICAL LITERATURE 36

CHAPTER THREE 40
3.0 METHODOLOGY 40
3.1 INTRODUCTION 40
3.2 Model Specification 40
3.3 METHOD OF EVALUATION 41
3.3.1 ECONOMIC CRITERIA: 41
3.3.2 STATISTICAL CRITERIA: 41
3.3.3 ECONOMETRIC CRITERIA: 42
3.4 JUSTIFICATION OF THE MODEL: 42
3.5 DATA REQUIRED AND SOURCES. 42
3.6 ECONOMETRIC SOFTWARE: 43

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY

An import is a commodity brought into a territory, especially across a national border, from an external source. Importation and exportation are the defining financial transactions of international trade. An import in the receiving country is an export from the sending country.
In international trade, the exportation and importation of goods are limited by import quotas and mandates from custom authority. The importing and exporting countries may impose a tariff (tax) on the goods. In addition, the exportation and importation of goods are subject to trade agreements between the importing and exporting countries.
Import consists of transactions in goods and services to a resident of a country from non-residents. The exact definition of imports in national income accounts includes and excludes specific border cases. A general view of imports in national income accounts is given below.
An import of a commodity occurs when there is a change of ownership from non-resident to a resident; the does not necessarily mean that the commodity in question physically crosses the frontier. However, in specific cases, national accounts impute changes of ownership even though in legal terms no change of ownership takes place. For example, cross frontier financial leasing, cross border deliveries between affiliates of the same enterprise, commodities cross the border for significant processing to order or repaid. Also smuggled goods must be included in the import measurement.
Imports of services comprise all services rendered by non-residents to residents. In national income accounts, any direct purchases by residents outside the economic territory of a country are recorded as imports of services, therefore all expenditure by tourists in the economic boundary of another country are considered part of the imports of services. Also international flows of illegal services must be included.
Basically, there are two types of import, which include:
1. Industrial and consumer goods.
2. Intermediate goods and services.
Industrial goods are made up of machinery, manufacturing plants and materials, and any other commodity or component used by other industries or firms. They are based on the demand for consumer goods that they may help to produce. They are classified as either production goods or support goods. Production goods are used in the production of final consumer goods, while support goods are, in general, used as inputs or raw materials to produce consumer goods. They are derived demand because they are demanded to produce consumer products.
Consumer goods are ready for consumption and satisfaction of human wants, such as clothing or food. Consumer goods are not used in the production of other goods. They are tangible commodities that are produced to satisfy the wants of the buyer. Consumer goods are classified as durable goods, non-durable goods, or consumer services.

DOWNLOAD COMPLETE PROJECT MATERIAL