The Impact of International Trade on Private Sector Development in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The Main Objective of the study is to investigate the impact of international trade on the private sector development in Nigeria; The specific objectives include:
To determine the relevance of international trade on private sector development in Nigeria.
To understand the impacts of international trade on private sector development in Nigeria.
To examine the challenges of private sector development in Nigeria.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The term international trade has been defined as trade across the frontiers; that is, with the rest of the world. It has been argued that it plays a prominent role in promoting economic growth and productivity in particular, and these debates have been ongoing since several decades ago. Furthermore, it has been revealed that internationally active countries tend to be more productive than countries which only produce for the domestic market. As a result of liberalization and globalization a country’s economy has become much more closely associated with external factors such as openness. The benefit of international trade for economic growth and development are difficult to understate. Imports bring additional competition and variety to domestic markets, benefiting consumers; and exports enlarge markets for domestic production, benefiting business. Trade exposes domestic firms to the best practices of foreign firms and to the demand of discerning customers, encouraging greater efficiency. Trade gives firms access to improved capital inputs such as machine tools, boosting productivity and providing new opportunities for growth to developing countries. International trade deals with the economic and financial interdependences among nations; international trade is part of our daily life, and international trade plays a vital role in shaping economic and social performance and prospects of countries around the world, especially those of developing countries. No country has grown without trade. However, the contribution of international trade to economic growth depends on a great deal on the context in which it works and the objective it serves. The impact of international trade on economic growth in Nigeria has generated large volume of empirical studies with mixed findings using cross sectional, time series and panel data. International trade is generally believed to be positively related with growth (Adam Smith, 1776). This idea prevailed until World War II. More precisely, it is held that appropriate trade policies in particular circumstances can be used to stimulate economic growth and development. Therefore, this section of the study seeks to review relevant empirical studies that have examined the impact of international trade in the actualization of sustainable growth and development. However, differing opinion have indeed continued to emerge on how international trade can affect economic activities. The genesis of these controversies has been traced to the theoretical exposition of Adam Smith and David Ricardo. Adam Smith first described the principle of absolute advantage in the context of international trade, using labor as the only input, since absolute advantage is determined by a simple comparison of labour productivities;
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of international trade on private sector development in Nigeria
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information the impact of international trade on private sector development in Nigeria. 200 staff of CBN, Uyo was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of international trade on private sector development in Nigeria
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of international trade on private sector development in Nigeria
Summary
This study was on the impact of international trade on private sector development in Nigeria. Four objectives were raised which included: To determine relevance is international trade on private sector development in Nigeria, to understand the impacts of international trade on private sector development in Nigeria and to examine the challenges of private sector development in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of CBN, Uyo. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up economic advisers, policy officers, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Nigeria has profited from international trade over the years. However, the gains of trade could be greater if the economy and the production structures had been responsive and more adaptable to changes both internally and externally on the basis of international economic system. In a ever changing and highly competitive global environment, Nigeria needs to continually re-examine, revise and re-evaluate sources of strengths, weaknesses, opportunities and threats (SWOT analysis) in order to develop appropriate policy strategies, that can lead to maximum national benefits within the context of identified problems.
Recommendation
Based on the findings of the study, the following recommendations were made;
- Since there is a positive long run relationship between exports and economic growth, The Nigerian Economy needs to concentrate on exportation of finished goods instead of the exportation of primary goods which in the long run we import as finished goods so as to improve domestic manufacturing industries, enhance productivity and increase employment which in the long run will increase economic growth and development and also increase exportation of finished goods.
- There is a negative relationship between balance of trade and economic growth, so it is advised that the government should effectively reactivate the non-oil export sector to broaden the diversification of the economy’s export sector and also increase employment opportunities which would in turn make balance of trade favorable.
- Based on the findings of this study trade openness has a negative relationship with economic growth therefore, it is highly recommended that government should put in place quotas and increase tariff-barriers to prevent dumping which arises from trade openness
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