This study examined the relationship between trade liberalization and economic growth proxied by gross domestic growth rate in Nigeria. The study specifically assessed whether there is a long run and short run causal relationship running from trade liberalization to economic growth in Nigeria. Trade liberalization was measured using trade openness, exchange rate, total import trade, total export trade and balance of trade. The data for the study were source from the CBN statistical bulletin for the period 1986 to 2014. The study used the Autoregressive Distributive Lag (ARDL) technique for data analysis. Findings from the analyses showed that trade liberalization has no long run causal relationship with gross domestic product growth rate in Nigeria. Also, trade openness and exchange rate have no short run causal relationship with gross domestic product growth rate in Nigeria. Lastly, total import trade, total export trade and balance of trade has short run causal relationship with gross domestic product growth rate in Nigeria. The study on the basis of these findings recommends the efficient use of total import trade, total export trade and balance of trade policy measures of trade liberalization in other to maximally benefit from trade liberalization.
Keywords: Exchange Rate, Gross Domestic Product, Trade Liberalization, trade openness
