Shipping Trade and Its Impact on Economic Growth in Nigeria; 1976-2015
CHAPTER ONE
OBJECTIVE OF THE STUDY
The central objective of this study is to empirically determine the impact of ocean shipping export trade on Nigeria’s economic development. Specifically, the study intends to accomplish the following:
- To determine the relationship between ocean shipping export trade and Nigeria’s gross domestic product.
- To ascertain the influence of ocean shipping export trade on Nigeria’s external reserve.
- To determine whether ocean shipping export trade significantly influences the level of external debts payment.
- To isolate policy constraints towards the effective use of ocean shipping export trade to boost economy and proffer policy recommendations.
CHAPTER TWO
LITERATURE REVIEW
CONCEPTUAL FRAMEWORK
Commentaries have over the year been given about shipping trade in Nigeria. Most of these works are focused on selected and diverse aspect of maritime practice as it affects the growth and development in Nigeria. We have such central theme relating to the roles of the National Maritime Authority (now NIMASA) and the effectiveness of the shipping policy decree 10 of 1987, the function of the Nigerian Ports Authority; problems and prospect of the shipping industry in Nigeria among others. No previous work has actually gone the extra mile of attempting to bridge the yawning gap among the maritime regulating agencies in Nigeria such as the Nigerian Port Authority (NPA), Shippers Council, Nigerdock and the N.MA. among others to the effect of making them a functional. Whole capable of elevating shipping trade in Nigeria to international standards. Nigeria possesses the geo-political and demographic potentials of a major maritime power yet the industry continues to suffer degradation.
Ihenacho (1997) enunciated some strategies towards the development of the shipping industry in Nigeria. His main focus was on the shortcoming of the shipping policy Decree 10 of 1987 which vested policy implementation in the industry on the National Maritime Authority (N. M. A. now NIMASA). In his view, the shipping policy is rather too deficient in scope and coverage to make any meaningful impact on maritime transport and trade in Nigeria.
He sees it as not protective enough of indigenous interest especially in the area of cabotage and government assistance to indigenous operators through subsidies for the acquisition or building of new tonnage or ships. He opines that Decree 10 of 1987 could better be appreciated as an instrument setting up the National Maritime Authority and advocated a new policy provision on shipping with a clear definition of the role of shipping in the larger scheme of the national economic and trade development which will have impart on economic growth and development.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
DEFINITION OF AREA AND POPULATION OF STUDY
This study focuses of the impact of shipping trade on economic growth of Nigeria. The period 1976-2006 is therefore covered and no attempt is made to extend the area of study to other countries of the world.
SOURCES OF DATA
The study employs mainly secondary sources of data as collected from the following specific offices/sources.
- CBN publications – Statistical Belletin, Annual reports and Statement of Accounts, Economic and financial Review, Research Seminar papers. etc.
- National Bureau for statistics – Annual Abstract of statistics
PROCEDURE FOR DATA ANALYSIS
The data generated for this study is analyzed employing both descriptive and inferential statistics. However, the three hypotheses formulated are analyzed using simple regression model. This is in view of the single explanatory variables (independent variables) involved in each of the three hypotheses of the study.
Therefore, the analysis of variance (ANOVA), coefficient of determination and student t-test is all employed in the various tests.
OPERATIONAL DEFINITION OF VARIABLES / HYPOTHESES TESTING
The study is concerned with the analysis of the impact of shipment trade on the level of economic growth in Nigeria. Hence, the study requires the specification of the dependent and independent variables in order to encourage effective analysis.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 4.1 INTRODUCTION
This chapter focuses on the presentation, analysis and interpretation of the data collected mainly through secondary sources. Hence, the emphasis here is to estimate, analyze and interpret the model as already formulated in chapter three of this project. Also, the three hypotheses of chapter one are equally tested in order to draw policy implications.
As already stated, we need to note that only secondary data were employed in carrying out the tests, supported by other analytical tools as percentages, charts etc, where applicable: Due to the nature of the hypotheses, a simple linear regression model was employed to test each of the three hypotheses. To achieve clarity, we also observed an orderly presentation in this chapter.
DATA PRESENTATION
This section is devoted to the presentation of data used in estimating the three models as developed and enumerated in chapter three. The data were sourced mainly from secondary sources thus;
- The Central Bank of Nigeria (CBN) publications;
- National Bureau for Statistics (NBS)
- Maritime Data Bank
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
SUMMARY OF FINDINGS
This study investigated the impact of Shipment Export Trade on Nigeria’s Economic Development, covering the period, 1976-2006. Three major hypotheses were formulated and tested with these objectives in mind.
- To determine the nature of relationship between Shipment Export Trade and the level of gross domestic product in Nigeria.
- To ascertain if Shipment Export Trade exhibits a significant relationship with the level of External Trade in Nigeria.
- To determine whether a significant relationship exists between Shipment Export Trade and the level of External Debt Payment in Nigeria.
- To determine whether the Shipment Export Trade contributes significantly to Economic Development.
- In all cases, the hypotheses proved significant even at 0% alpha level or 100% confidence level, thus, suggesting that Shipment Export Trade exerts a significant influence on the levels gross domestic product, external reserve and external debt payment, respectively for hypotheses one through three.
CONCLUSION
The study is on the impact of Shipment Export Trade on economic development of Nigeria, covering a period of thirty-one years from, 1976-2006. Three hypotheses were actually tested for the following conclusions to be reached:
- Shipment export trade has actually exerted a positive effect on the economy as a whole.
- Shipment Export Trade exerts a significant positive effect on the level external reserve in Nigeria.
- Akin to the two revelations above, the Shipment Export Trade exerts a significant effect on the level of Nigeria’s external debt payment, especially for the period under investigation, 1976 – 2006.
RECOMMENDATIONS
The findings of this study therefore, bring to the limelight the need for the following recommendations:
- With the perceived weak institutional setting, there is therefore the need to improve the institutional setting in order to boost external trade contribution to the economic as a whole. Even though Shipment Export has been found to contribute positively to the economy generally, whether in terms of contribution to gross domestic product, external reserve or external debt payment, one is tempted to say that more contributions would have been recorded with strong institutional setting.
- Similarly, the poor transparency and corruption that appear to be endemic in our country call for concerted effort to make for an improved performance.
- It has also been observed that information is grossly inadequate in the export trade. Hence, the need to improve the market information, especially in the areas of reporting and disclosure standards can hardly be over-emphasized. For instance, it appears disturbing that there seems to very wide gaps between what the Nigeria’s actual export receipts and the export targets. At best, this portends or lends further credence to the seeming over-orchestrated corrupt practices in high places in Nigeria.
- Above all, there is need for policy makers to be consistent, both in terms of formulation and policy implementation.
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- Dominic S. Statistics And Econometrics Schaum’s Outline Series
- Edward B.A.: Economics of Public Finance Prienticell – Hall Incorporated New York (1947)
- Fenkel, J.A. and Assaf, K. (1978); Fiscal Policies and the World Economy Massachusetts Institute of Technology, Press Cambridge: Massachusetts
- Gujarati D (1979): Basic Econometrics; Mc Graw – Hill International Book Company Ltd, Kogakusha.
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