Trade Liberalisation and Exports in the Nigerian Economy: An Assessment

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INSTITUTE FOR SOCIAL AND ECONOMIC CHANGE BAN GALORE

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Various policy measures have been taken by the Nigerian government since the advent of Structural Adjustment Programme (SAP) to improve the external trade sector. This paper appraises the journey so far. Thus, it develops a mixed quantitative-qualitative model designed to evaluate export responses to trade liberalisation policies. This paper, hypothesising a full effect of trade liberalisation in the long run, has adopted the co-integration and error correction technique to estimate the model. The results tend to suggest that trade liberalisation is mildly effective. Thus, there are areas that raise some doubts about the potency of trade liberali'Sation to bring about the desired economic growth and development propelled by international trade. This model can be used to evaluate the effectiveness of policy shifts, and hence its appropriateness to provide a background for fine-tuning policy to achieve the overall economic objectives

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HB Economic Theory

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