Abstract:

This study investigates the impact of trade openness on economic growth in Nigeria using annual data over the period 1980-2013. The analysis is based on the bound testing approach of co-integration advanced by Pesaran et al (2001). The empirical results confirmed the validity of trade led economic growth in Nigeria. A co-integrated relationship between economic growth and trade openness was noticed in both the long-run and short-run. Further analysis showed that trade openness Granger-caused economic growth in the sample period of study. Therefore, the Nigerian government will need to implement effective macro-economic policies along with immediate improvements in the structure and functioning systems of governance for stabilising economic growth along with trade liberalisation reforms.