Empirical Analysis of Trade Barriers and Economic Growth in Nigeria
The impact of trade barriers on economic growth remains an issue that can only be resolve empirically, in view of this, the study investigates the relationship between trade barriers and economic growth in Nigeria over the period of 1970-2006. The study employed ordinary least square regression techniques. The period covered is 37 years. Data was collected on Gross Domestic Product (GDP) which is proxy for economic growth. Trade barriers are in form of tariffs such as import and export duties, quotas and bans. Due to unavailability of required data on import quota and unquantitative nature of ban, data was collected only on import duty and export duty which form tariff variable. Data was also collected on Aggregate export, Aggregate import and ratio of export to GDP. The result showed that Tariff barrier, Aggregate export and openness are positively related to economic growth while Aggregate import and Ratio of export to GDP are negatively related to economic growth. The empirical findings shows that trade barriers have positive and statistical impact on economic growth in Nigeria.
Keywords: Trade, Barriers, Growth and Development