Trade Openness and Solid Mineral Sub-Sector Growth in Nigeria (Published)
Government at different times had implemented policies and programs to trigger the performance of the solid mineral sub-sector in Nigeria positively yet it contribution to the GDP remains dismal. Hence, the study focused on the impact of trade openness on the growth of solid mineral Sub-sector in Nigeria from 1981 to 2020. The study employed Auto Regressive Distributed Lag (ARDL) as the modeling technique. Solid mineral subsector (SLM) was used as the dependent variable while Trade openness (TPN), Foreign direct investment (FDI), Foreign portfolio investment (PFI), Remittances (RMT) constituted the independent variables. Exchange rate (EXR) was used as check variable. The study found that TPN, FPI, RMT and EXR negatively influenced the solid mineral sub-sector. FDI maintained a positive relationship with SLM. Based on these findings, the paper recommended that government should extend the tax exemption period for companies exploiting solid minerals beyond the existing three years to attract foreign investors into the sub-sector. Also, government should adequately regulate the mining sub-sector to attract portfolio investment and foreign remittances into the sector.
Keywords: Growth, Solid Mineral., trade openness
Trade Openness, Human Capital Investment and Economic Growth in Nigeria (Published)
The study examined the impact of trade openness and human capital investment on economic growth in Nigeria from 1981 to 2020 and employed error correction mechanism for the analysis. Economic growth was proxied by nominal gross domestic product. Human capital investment was decomposed into government capital expenditure on education, government recurrent expenditure on education, government capital expenditure on health and government recurrent expenditure on health while trade openness was measured by trade openness index. Exchange rate was used as check variable. The study carried out descriptive statistics test, Augmented Dickey-Fuller unit root test, Johansen co-integration test and Error Correction Mechanism (ECM) technique for the analysis. The result revealed that capital component of government expenditure on health and education were negatively related to national output during the period of investigation. However, the recurrent component of government on both health and education as well as trade openness were positively related to economic growth for the period. The study recommended among others that Government should increase funding in education and health sectors to meet the 20% to 15% benchmark recommended by UNESCO and WHO respectively and adopt the private sector model of payment that is based on milestone achieved in capital projects in both sectors.
Citation: Timothy Kabari Kerebana and Itode James Krama (2021) Trade Openness, Human Capital Investment and Economic Growth in Nigeria, International Journal of Development and Economic Sustainability, Vol.9, No.3, pp.57-71
Keywords: Human Capital Investment, economic growth, trade openness
Trade Openness and Nigeria’s Economic Growth (1990- 2015) (Published)
This study examines empirically the relationship between Trade openness and Economic growth in Nigeria. The study covered the period 1990 – 2015, using ARDL approach to cointegration. The ARDL result confirmed the existence of a long-run relationship between Economic Growth, Trade Openness, Foreign Direct Investment and Gross Capital Formation. It was found that Trade Openness and Gross Capital Formation had positive and negative impacts respectively on growth rate of GDP in the short run. Therefore, this study concludes by recommending that; (i) trade openness should be regulated by government; from our result an increase in trade openness caused a decrease in our GDP (ii) FDI should be encouraged as it was seen to have significantly improved economic growth in Nigeria.
Keywords: Auto-Regressive Distributive Lag (ARDL), Nigeria, economic growth, trade openness