International Business and Nigerian Economic Growth

Abstract

This study examined the relationship between international business and Nigerian economic growth from 2010 through 2019. The study specified linear model by expressing economic growth measured by GDP as a function of international business measured by the value of export, import, forex allocation for import business and exchange rate. Quarterly data were collected from the various editions of CBN’s statistical bulletin and SEC’s statistical bulletin. Analysis of the data was done by employing Autoregressive Distributed Lags Model. The result revealed that in the short run, export trade was negatively and insignificantly related to economic growth while import was positive associated with economic growth. Furthermore, foreign exchange allocation to import business also had negative and insignificant relationship with economic growth while exchange rate maintained positive and significant relationship with Nigerian economic growth. Based on the findings, it was concluded that international business has mixture of insignificant positive and negative relationship with Nigerian economic growth and recommended that government should wade into the export development policy and review it objectively to facilitate easy and cheaper entrance into export business reversing the trends of negative relationship between Nigerian economic growth and her international business.

Keywords: International business, Relationship, Export, Import