TRADE OPENNESS AND REAL SECTOR GROWTH IN NIGERIA: A FOCUS ON AGRICULTURAL AND MANUFACTURING SECTORS


Donatus Otaigbe ONOGBOSELE Ph.D
Department of Economics, University of Africa, Toru-Orua, Bayelsa State, Nigeria.
Abstract
This study investigates the impact of trade openness on Nigeria's real sector growth, focusing on the agricultural and manufacturing sectors. Utilizing the Autoregressive Distributed Lag (ARDL) Error Correction Model (ECM), we examine both short-run and long-run dynamics between trade openness and real sector growth. The findings reveal mixed effects of trade openness on these sectors. In the short-run, trade openness demonstrates weak impacts on manufacturing output, with interest rates and capital goods imports showing minimal significance. However, in the long-run, trade openness positively influences manufacturing growth, with interest rates and energy consumption emerging as significant factors. For the agricultural sector, trade openness exhibits a negative short-term effect, possibly due to external competition and domestic policy shifts. Nevertheless, precipitation and capital goods imports are identified as crucial determinants of agricultural growth, especially in the long-term. The study underscores the importance of tailored trade policies, particularly for agriculture and manufacturing, alongside structural reforms aimed at improving credit access, infrastructure, and energy supply.
Keywords: Trade Openness, Real Sector, Agricultural Sector, Manufacturing Sector, Economic Growth
Journal Name :
EPRA International Journal of Economic Growth and Environmental Issues (EGEI)

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Published on : 2025-06-21

Vol : 13
Issue : 6
Month : June
Year : 2025
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