The Growth and Patterns of International Trade
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To ascertain the relationship between economic growth and international trade
- To investigate the pattern of international trade
- To ascertain whether developed and non-developed countries international trade varies
CHAPTER TWO
REVIEW OF RELATED LITERATURE
International trade:
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.
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 growth and patterns of international trade
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 growth and patterns of international trade. 200 staff of ministry of Economic development, Onitsha, Anambra State 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.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133(one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the growth and patterns of international trade
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 the growth and patterns of international trade
Summary
This study was on the growth and patterns of international trade. Three objectives were raised which included: To ascertain the relationship between economic growth and international trade, to investigate the pattern of international trade and to ascertain whether developed and non-developed countries international trade varies 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 ministry of economic development, Onitsha, Anambra State. 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
First, over the last 40 years there have been major innovations in trade modeling that help explain trade between developing countries (i.e., new trade theory), but also trade between developed and developing countries (i.e., offshoring and the more traditional models of absolute and comparative advantage). Generally, transportation is largely ignored in the economics trade literature, and this economics literature (short of what could be called gravity variables) is largely ignored in the transportation literature. There is considerable room to integrate these models more closely. Second, the costs of infrastructure and vessels are quite high in maritime economics, and new markets (flows) are quite important to the industry. While the rank correlations of leading importers and exporters are quite high, the concentration levels of importers and exporters appear to be falling. This points to greater diffusion and competition in world markets; complete with new trading partners and growth among previously small traders. This finding hits directly on growth in transportation markets, particularly among emerging economies. Finally, the recent development in trade following Melitz (2003) may prove quite useful in incorporating transportation decisions into new trade models. In particular, the decision to export along with the target (importer) is a promising area to area to examine the introduction and growth of specific trading lanes
Recommendation
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.
References
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