EFFECT OF INTERNATIONAL TRADE ON THE GROSS DOMESTIC PRODUCT (GDP) OF NIGERIA (1987-2023)

Abstract

This study examines the influence of international trade on Nigeria’s Gross Domestic Product growth from 1987 to 2023. The specific objectives are to ascertain the effects of imports, exports and external reserves on Nigeria’s Gross Domestic Product. The study utilized an ex post facto research design, which implies that the researcher cannot manipulate or influence the outcome of the research. A time series analysis was used, employing imports, exports and foreign reserves as key variables. The research seeks to quantify the effects of these trade indicators on GDP growth, offering insights into the role of international trade in driving economic performance in Nigeria. The study shows that while imports and external reserves had a positive effect on GDP, exports had a negative but statistically insignificant effect on GDP. The study concluded that though external reserves did not immediately show a significant positive influence in the lagged period, they remain a key driver of economic growth in Nigeria.