THE IMPACT OF INTERNATIONAL TRADE ON THE DEVELOPMENT OF COMMERCE AND INDUSTRY IN NIGERIA. A RESEARCH PROJECT MATERIAL ON PUBLIC ADMINISTRATION
ABSTRACT
The project set out to examine the impact of international trade on the development of commerce and industry in Nigeria, the variables used for this study are GDP, Volume of Import, Volume of Export, Net Export and Trade Openness. The methodology used is Ordinary Least Squares (OLS) and E-new software package. The main objective of this study is to examine the relationship between international trade and economic growth, and to examine the impact of international trade on the development of commerce and industry in Nigeria. The T-test is used to determine the significance of the individual parameter estimates. The F-test is used to determine the significance of the entire regression plan. The regression result shows that NEXP (Net Export) and VIMP (Volume of Import has a positive relationship with GDP) while Trade openness and VIMP (Volume of Import has a negative relationship with GDP). The researcher made the following recommendations among others: The federal government of Nigeria should put in more efforts in encouraging local manufacturers to produce more.
CHAPTER ONE
INTRODUCTION
- Background Of The Study
International trade deals with the economic and financial interdependence among nations, international trade is a part of our daily life, international trade plays a vital role in shaping economic and social performance and prospects of countries around the world, especially those of developing countries. No country has grown without trade. However, the contribution of international trade to the development of commerce and industry in Nigeria depends a great deal on the context in which it works and the objectives it serves.
International trade is the exchange of capital goods and services across borders or territories. Through international trade countries supply the world economy with the commodities that they produce relatively cheaply and demand from the world economy the goods that are made relatively cheaper elsewhere. The positive effects of international trade on the development of commerce and industry in Nigeria were first pointed out by Smith (1776). This idea prevailed until World War II, although with relative hibernation during the “Marginalist Revolution”. Economic theories have argued that countries engage in international trade to reap the gains that arise from specialized production with each country concentrating on producing those goods and services that involve the least opportunity cost.