IJRS
An Open Access Publication Journal
eISSN: 2284-6848
Foreign Trade, Foreign Exchange Earnings and Economic Growth in Nigeria
Author(s):
Adegbite Tajudeen Adejare; Owolabi A. Usman
Abstract:
This study examined the effects of foreign exchange rate and foreign trade on economic growth in Nigeria. Secondary data were obtained from central bank of Nigeria statistical bulletin covering the period of 1970 to 2012. Multiple regressions were employed to analyze data on such variables Gross Domestic Product (GDP), foreign exchange rate, import, export, trade openness, and inflation rate were all found to have significant effects on the Economics Growth with the Adjusted R2 of 0.9468% (approximately 95%). Based on the finding, it is concluded that foreign trade (proxied by import and export) have positive significant impact on economic growth in Nigeria. But exchange rate has positive significant impact on export but has negative significant effect on import. It is recommended that conscious efforts should be made by government to fine-tune the various macroeconomic variables in order to provide an enabling environment to stimulate foreign trade by engaging in more of export trade and in effect to curtail import trade which has a negative effect or strain on the economy.
Keywords:
import, export, exchange rate, Nigeria, trade openness, economic growth
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