Impact of International Trade in Nigeria

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

Global growth is an increase in the amount of goods and services produced per head. The graph shows that there is a clear correlation between global economic growth and international trade. Up until 1990 to 2008 both global economic growth and international trade steadily increased. However in 2008 when there was a global recession world exports where 16000bn which surpassed world GDP which was 70,000bn. After 2008 both world exports and world GDP fluctuated, in 2010 world exports decreased however it slowly increased to exceed world GDP. Currently both are at the same point on the graph with world exports at 19000bn and world GDP at 80,000. Therefore the graph demonstrates a clear causal link between global growth and global

International macroeconomics is the study of how nations cooperate through trade of goods and services, through movements of money and by investment based on the idea that resources are less transportable internationally than goods. During the semester, we learned that a primary motivation behind a nation’s participation in international trade is the belief that resources are not circulated equally among all trading nations. International trade is the foundation upon which American prosperity resides. Free trade policies have produced a level of competition in today 's open market that stimulates recurrent improvement leading to superior products, better-paying jobs, new markets, increased savings and investment, and an inordinate range of consumption choices. Free trade allows added products and services to make it to American buyers at reduced prices, thereby significantly raising the standard of living. The benefits of international trade are numerous as evident in the positive effects illustrated by the growth of the U.S. economy including job growth all of which offset its challenges involving fair labor standards and apprehensions about the environment.

There are several authors that put emphasis on the role of international trade as the main conduit of economic development. Influential papers in this school include Sach and Warner (1995), Frankel and Romer (1999), and Dollar and Kraay (2003). In these papers, trade strongly fosters economic convergence among countries and regions.

To avoid the situation- just as Edwards (1993) discusses- put too much emphasis on exports, we include exports shares as well as import shares in GDP to do case study and believe that this is an important step to understand the association between international trade and economic growth. In addition to that, since most of the countries started with a significant degree of anti-export and anti-import prejudice, tariff reductions will also be mentioned in this section.

Many developing nations, including Nigeria neglect agricultural sector development, as such derived the sector of the necessary resources needed the boost economic development. Most advanced nations developed their agricultural sector first before embarking on development of the industrial sector (Bezemer, & Headey, 2008). As such, it may be hard for developing nations, including Nigeria to achieve their industrialization without fundamental development of the agricultural sector (Bezemer, & Headey, 2008). This is because, agricultural sector, provide food for the populations, feed for livestock, fiber and raw materials for the local industries. Also, surplus products from this sector will be exported for foreign revenues. However,

Nigeria's economy is estimated to be worth about $262bn, making it one of the largest economies in Africa. The estimates and analysis of various indicators is discussed in the later sections. The country has

Government plays and integral role in ensuring that developing countries have a fair and sustainable share of the benefits of the international trade environment. There is a large contrast between a system operating in a free market type environment versus one with heavy government regulations and intervention. It is important to examine industrial policy, strategic trade policy, trade problems facing developing nations, import substitution and export-led growth.

Trade among nations via the use of comparative advantage promotes growth, which is attributed to a strong connection between the openness of trade flows and the affect on economic growth and economic performance. Additionally there is a strong positive

During the period 1960-1997, Nigeria’s growth rate of per capital GDP of 1.45% compares unfavorably with that reported by other countries, especially those posted by china and the Asian Tigers such as Hong Kong, Singapore, Taiwan, and south Korea, viewed in this comparative perspective, Nigeria’s per capita income growth has been woefully low and needs to be improved upon.

International trade indicates a large part of the economic research of production growth. Market size has grown from exports of a companies’ products. By exporting a company learns about the foreign markets. The company may gain some expertise from feedback they obtain from the buyer. This is called the learning-by-exporting theory.

In April 2014 statistical "rebasing" exercise, Nigeria has emerged as Africa 's largest economy, with 2015 GDP estimated at $1.1 trillion. Oil has been a dominant source of income and government revenues since the 1970s. Following the 2008-9 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Nigeria’s economic growth over the last five years has been driven by growth in agriculture, telecommunications, and services. In this paper I will be trying to marketing some of things in Nigeria that might have people interested in getting their hands on or even coming to Nigeria to see. For instance I will give you why some people

It can be seen that the growth of trade has led into the rapid economic growth in some countries. The reasons of rapid growth in world trade is due to the reduction of trade barriers at global and regional level. The country also can gain from trade for some reasons. Firstly, trading leads the country to produce and consume at prices which differ from those international market does, so if the price in international market is more expensive,

This study will examine the negative consequences of sharp drop of crude oil price on the Nigerian economy. The descriptive study will use secondary data from the Nigerian Central Bank (CBN) and the International Monetary Fund (IMF) to conduct the study and examine whether over dependency on crude oil sector production and export is detrimental and hurting production and exportation of other sectors such as agriculture, manufacturing and service sectors. The variables for this study therefore are the production and exportation data of crude oil, agriculture, service and manufacturing. The data will be sort and obtained from the CBN and backed-up with the IMF data. Having conceptualized the theory of the study in the previous paper (week one assignment), effort will be made in this paper to merge these conceptual elements (theory and empirical data) together. This paper will focus more on how to measure and ensure the validity of the study, including the data collection, data analysis and overall methodology, design and even research findings. However, we are going to focus more on the validity.

THE EFFECT OF MACROECONOMIC INDICATORS ON ECONOMIC GROWTH IN A PETROL-DOLLAR ECONOMY: THE NIGERIAN EXPERIENCE