International Trade as an Engine of Growth in Developing Countries: a Case Study of Nigeria (1980-2003)

In: Business and Management

Submitted By teecee
Words 4611
Pages 19
International Trade As An Engine of Growth In Developing Countries: a Case Study of Nigeria (1980-2003)


A ll economies are increasingly open in today’s economic environment of globalization.

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 trade to development depends a great deal on the context in which it works and the objectives it serves. In recent decades, a number of developing countries, most notably the East Asian newly industrializing countries, have been able to purposefully use the elemental force of trade to boost growth and development within a relatively short time span. At the same time many other developing countries, especially the least developed countries (LDCs), have embarked on unilateral trade liberalization in recent years, with very limited results at best in terms of increased growth and development.
To act as an engine of development, trade must lead to steady improvements in human conditions by expanding the range of people’s choice, a notion that the concept of human development 3 tries to capture. From this standpoint, the trade and development performance of a country cannot be seen as the mere sum of its economic growth and export performance. Instead, it is a composite notion, reflecting how trade relates to the range of choices available to people in a country at a particular point in time. The extent of such choice, in turn, depends much on the interplay among factors that determine both trade outcomes and human development outcomes. The trade and development index (TDI) provides a quantitative indication of the trade and development performance of countries by systematically accounting for the interactions among factors…...

Similar Documents

Trade Policy and Developing Countries

...Course: Tutor: Date of submission: Trade Policy and Developing countries A number of developing countries have enabled the facilitation of their economies to develop recent centres of development internationally. International trade has enabled them to make an effective way to generate funds as a result of making trade. However, there has been uneven development and especially the poorest countries have managed a lesser share in the world economy. Many of these poor countries have been unable to make appropriate use of the markets that are opening around them or even try to balance losing tax revenue by developing ways of taxation, since the financial stability and internal structures of these countries are lacking in some ways. The upholding of barriers to trade and other protective measures continues by the need to keep the existing home control structures (Krueger, 45). The large numbers of developing countries highly dependent on agriculture have slow productivity rate and the trade barriers remaining are more than those for industrial goods. Industrial production has witnessed more investment by the emerging economies; this has facilitated the development and it has seen exports grow twice as much as agricultural exports, which comprise 80 percent of the total volume of exports of developing countries. It is necessary for developing countries to take free trade services and labour mobility (Colin, 42). Developing countries should develop their institutions,......

Words: 808 - Pages: 4

The Effect of External Public Debt in Developing Countries on Economic Growth - an Empirical Study on Argentina

...Abstract This paper would discuss the effect of external debt on economic growth with four areas, the effect on private local investment, foreign direct investment, government expenditure and export growth. Three theoretical models are adopted, namely Debt Overhang Theory, Liquidity Constraint Hypothesis and Crowding-out Effect respectively. Two policy implications on debt relief and debt restructuring are analyzed. And finally, the paper will include the discussion on the necessary tradeoff with inflation and contractionary fiscal budgeting after debt servicing. KEY Words: Heavily In-debt Poor Countries (HIPC), External Debt/Foreign Debt) Sustainability, Debt-GNI Ratio, Debt-Export Ratio, Debt Service Ratio Word count (excluding table of content, tables and reference): 2974 Topic: The Effect of External Public Debt in Developing Countries on Economic Growth - An Empirical Study on Argentina Abstract P.1 1. Introduction P.3 1.1 Literature Review P.4 1.2 Structure and Magnitude of External Debt of Argentina P.4 1.3 Theoretical Relationship between External Debt and Economic Growth P.6 1.4 Research Question(s) and Framework P.7 2. Data Collection and Empirical Analysis P.7 2.1 The effect of external public debt......

Words: 3688 - Pages: 15

Impacts of Fdi to Developing Countries be important aspects of economic development of host countries, and crucial, in building technological capabilities of local companies in developing countries. It is a channel for international diffusion of technology, having the potential to transfer technological, organizational and managerial practices to developing countries, which may, in the long run, lead to higher technological capabilities, and innovation, resulting in economic growth in these countries. For Tanzania specifically, FDI is a type of investment which is relatively infant as the government had opted for a socialist path of economic development from 1967 to around mid 1980s, following the Arusha Declaration. In mid 1980s, the government initiated and implemented deliberate economic liberalization policies. These resulted into the rise of FDI in Tanzania. For instance, FDI inflows increased from USD 2,418.7 million in 1999 to USD 3,776.6 million in 2001. Such investments were concentrated in the sectors of manufacturing (33.4%), mining and quarrying (28%) as well as agricultural (6.7%) (TIC, BoT and NBS, 2004: 23-24)4. 2.2 Foreign Direct Investment (FDI): Definition and Characteristics 2.2.1 Defining FDI Several FDI definitions have been given in the literature and these are more or less similar. A more representative definition of FDI is that by Rutherford (1992: 178; 1995: 178-179) who defines FDI as business investment in another country, which often takes the form of setting up local......

Words: 9368 - Pages: 38

International Commercial Arbitration and the Developing Countries

...International commercial arbitration is an alternative dispute resolution mechanism of solving disputes arises out of international trade and commerce. It has been vastly developed as one of the most efficient and preferable method of commercial dispute resolution internationally and resulting in the involvement of parties from around the globe that come from different legal systems. Now a day’s developing countries institutions are increasingly entering the IP market, and multiparty, multinational IP relationships are becoming more common, and even essential to socio-economic development. Through transactions involving these relationships scientific, technical, entrepreneurial, creative, and traditional knowledge is exchanged. This leads to increase a large number and type of international disputes. For resolving these disputes the arbitration mechanism is adopted as it resolve disputes (commercial or political) quickly through practical solutions rather than relying on the inflexible and lengthy processes of national litigation that the existing systems had to offer. In modern times, with the rapid growth and expansion of international business transactions Commercial arbitration is an efficacious alternative dispute resolution technique in business community. Though, it is a private, cost-effective and prompt method of resolving cross-border disputes, which makes the parties to opt for this mechanism over domestic litigation. But at the same time it is not a “neutral”...

Words: 11454 - Pages: 46

Growth of International Trade & Its Financing in Bangladesh

...Growth of International Trade & its Financing in Bangladesh (This dissertation has been submitted for the partial fulfillment of the 6th term MBM Program) SUBMITTED BY: Mukti Chakraborty MBM 10th Batch Roll No. 100616 SUBMITTED TO: MBM PROGRAM OFFICE CENTER FOR POST GRADUATE STUDIES (CPGS) BANGLADESH INSTITUTE OF BANK MANAGEMENT MIRPUR-2, DHAKA-1216. January, 2008 Acknowledgement At the beginning, I would like to express my sincere gratitude to the God most merciful and beneficiary for empowering me conduct the report within scheduled time. I would like to express my profound gratitude and wholehearted respect to my research Guide Dr. Toufic Ahmad Choudhury, Professor and Director, Center for Post Graduate Studies (CPGS), BIBM, Dhaka for his inspiring guidelines, valuable suggestions, constructive criticism and constant help throughout the research work and in preparation this report. I am deeply indebted to Dr. Bandana Saha, Professor and Director (Research, Development and Consultancy) and Dr. A.S.M. Ahsan Habib, Associate Professor of BIBM, Dhaka to allow me to work on my desired dissertation topic and their consistent valuable suggestion, active inspiration and constant help to construct and illustrate this work. Indeed I am grateful to all faculty members of BIBM from whom I was inspired and supported in various ways during the research and at the time of study. I am also indebted to the entire library officers and staffs of BIBM...

Words: 21075 - Pages: 85

Fdi and Nigeria Economic Growth

...THE EMPIRICAL ANALYSIS OF IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA BY OKUNLOLA TUNDE S. MATRIC NO: 139191 September 2011 Being research work submitted to Department of Economics, Faculty of Social Sciences, University of Ibadan, in partial fulfillment of the requirement for the award of Bachelor of Science (B.Sc) in Economics CERCTIFICATION I hereby certify that this work was carried out by OKUNLOLA TUNDE S. of Matric No 139191 in the Department of Economics, Faculty of Social Sciences, University of Ibadan. …………………………………. ……………………………… Date Dr. B. Fowowe Supervisor DEDICATION My sole dedication goes to God almighty whose mercy has never ceased in changing me despite all odds, whose boundless love and vast grace is bringing to pass my childhood dreams and fantasies. ACKNOWLEDGMENT My deepest gratitude goes to my parents who always, tirelessly and sacrificially support me, trust me, care for me and love me despite all my short comings and even when it so difficult. May the lord reward you abundantly. And also to my supervisor, Dr. B. Fowowe, I say thank...

Words: 12592 - Pages: 51

Entrepreneurship and Small Business a Case of a Developing Country

...ENTREPRENEURSHIP AND SMALL BUSINESS A CASE OF A DEVELOPING COUNTRY Abstract This study revolve around the socio-economic structure of entrepreneurship, factors affecting the growth and development of enterprises and problems faced by them. For the purpose of data collection a sample of fifty small scale units was taken and a common schedule of structure questionnaire containing questions of various aspect of entrepreneurship was administered personally to the owner/managing director of each of the units as the case may be. This study is partially exploratory but basically descriptive in nature. From the interpretation and analysis of data collected the result shows that age is not a static phenomenon for entrepreneurship. Those who have less education but have more practical experience and training, enter into the industry early. However, in such cases less education restricts the growth and development of the enterprise. The paper also finds reasons for enterpreneurship, the three was to earn high profits and prosperity. The variables which decide the area of activity or the product line are based on assured market, parental business, experience and revival of the sick unit etc. There are certain irritants that also serve as impediments for the growth of enterprises. For instance competition from small scale units, (28%) financial constraints, high intent ratio and others. Introductionn The prosperity and progress of a nation depends on the quality of its people....

Words: 5158 - Pages: 21

A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria

...A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria Table of Contents A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria 1 Chapter 1 General Introduction 6 1.1. Background 6 1.1.1. Definitions 14 1.1.2. Trade Liberalization 14 1.1.3. International Trade Law 15 1.1.4. Right to Health 16 1.1.5. Human Right Laws 17 1.2. Research Questions 18 1.3. Justification of the Research 21 1.4. Research Objectives 30 1.5. Research Methodology 31 1.6. Research Structure 37 Chapter 2 Theoretical Framework and Literature Review 40 2.1. Introduction 40 2.2. International Trade Rules and Protection of People’s Right to Health 41 2.2.1. Sources of International Trade Rules 41 2.2.2. Trade Liberalization and the Protection of the Right to Health 44 2.3. Scope of the Right to Health 54 2.4. Brief Overview of State Intervention Theory 59 2.5. States Duty towards the Fulfilment of the Right to Health 65 2.6. Legislative and Institutional Regulations Protecting the Right to Health in Nigeria 73 2.6.1. The International Covenant on Economic Social and Cultural Rights (ICESCR) 1966 76 2.6.2. The African Charter on Human and People’s Rights (ACHPR) 78 2.6.3. The International Health Regulations, 2005 81 2.6.4. The Nigerian Constitution 82 2.7.......

Words: 78399 - Pages: 314

Procurement in Oil and Gas Industry in Developing Countries Nigeria Agip

...Procurement in Oil and Gas Industry in Developing Countries A Case of AGIP Nigeria Name Course Professor Date Abstract This is a thesis about procurement process in the oil and gas industry in Nigeria with specific stress on AGIP Nigerian AGIP Energy and Natural Resource.” The report starts with an introduction to the country Nigeria itself. It develops with the research on the oil and gas sector in the country and then focuses on the AGIP and its operations. Thus the first section comprises the Introduction, the background of the problem the research objectives, literature review regarding the procurement process and the company AGIP. The second section is about the research methodology, the data analysis and presentation of results leading to limitations and recommendations and a conclusion. A qualitative research design has been used to do the research. These research methods have been used by every researcher in a way or other and quality data has been accumulated to help these researchers to prove their viewpoint either statistically (quantitative) or by subjective analysis of earlier researches or direct observations of the subjects (qualitatively). The data sources used for the literature review for this study are primarily the secondary sources particularly from books, journals, articles published in various scientific periodicals and / or newspapers along with the information gathered from the internet itself using its websites.  The study manoeuvres at two......

Words: 12215 - Pages: 49

An International Country Case Study of South Korea

... AN INTERNATIONAL COUNTRY CASE STUDY OF SOUTH KOREA [pic] PREPARED BY INTERNATIONAL TRADE & ECON 470 Table of Contents Introduction 1 International Trade Theory 3 Revealed Comparative Advantage 3 Resource Endowments 3 RCA VS Technology Resource Endowments 6 Implication 3 International Trade Policy 4 Tariff Policy 5 Government Corruption & International Trade Policy 6 Implication 3 International Monetary System 1 Balance of Payment 3 Currency Value 3 Implication 1 Conclusion 1 Suggestions for Further Research 3 Work Cited 5 APPENDIX Figure 1.1 1 Figure 1.2 1 Figure 2.1 1 Figure 2.2 1 Figure 3.1 1 Figure 3.2 1 Figure 4.1 1 Figure 4.2 1 Figure 5.1 1 Figure 5.2 1 Introduction Overview of South Korea South Korea is formally known as the republic of Korea is a country in East Asia. The country covers a land area of 99,392 Km square and a population of 49.3 million. The country constitutes the southern part of the Korean Peninsula. South Korea is a developed nation ranked at position fifteen. In terms of education, the country is not left behind as it ranks highly in terms of providing high quality education to its citizens. Proper and quality healthcare facilities are also available in the country. South Korea is my country of choice because I got attracted by the efforts the country has put into place to grow from the world poorest country to......

Words: 3610 - Pages: 15

The Impact of Trade Liberalization on Developing Countries

...The effects of trade liberalization in agriculture, particularly of developing countries, have become an important part of major studies in recent years after a decade of failed or unsafisfactory WTO negotiations. The trade talks launched at Doha, Qatar, in November of 2001, are considered to be the first of nine negotiating rounds to address the “needs and the interests” of developing countries (Elliott, 2007, p. 1). There have been many attempts to reach an agreement between countries on agricultural liberalization. The failure to reacha solution still persists, however, as was seen at the “Battle in Seattle”, in November of 1999 where strong anti-WTO sentiment took to the streets in mass protests. (Fabiosa, 2008, p. 1). This anti-trade stance asks the fundamental question whether agricultural trade liberalization is beneficial to developing countries or not. The growth of globalization creates interdependence among countries and increases the capacity of the economy of the countries to engage in international trade. Trade liberalization in agriculture has significant benefits to individuals who devote their lives to agriculture, mainly small farmers from developing countries. This idea would also promote economic growth in these countries. In order to make trade liberalization in agriculture an ideal concept, there are still a few hurdles that need to be cleared, such as granting developing nations funds to meet......

Words: 2118 - Pages: 9

“a Study of International Marketing Application in Foreign Trade in India”

...“A Study of International Marketing Application in Foreign Trade in India” Authors: Nader Angoutin Research Scholar in Commerce, University of Kerala, Trivandrum. Abstract This paper analyses the Study of International Marketing Application in Foreign Trade in India. The study argues the international marketing as simple extension of exporting, whereby the marketing miss is simply adapted in some way to take into account differences in consumers and segment. International marketing research really plays an important role in the marketing research. The study will help in understanding the application of international marketing and knowing the socio economic, foreign trade and financial economic effects. This will fill a critical gap as not much information is available in the context of International Marketing Application in Foreign Trade in India. Keywords: International Marketing- Foreign Trade INTRODUCTION: International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, or across national borderlines. The intersection is the result of the process of internationalization. Many American and European authors see international marketing as simple extension of exporting, whereby the marketing miss is simply adapted in some way to take into account differences in......

Words: 2469 - Pages: 10

International Trade as an Engine of Growth

...Centrepoint Humanities Edition VOL.14, NO.1, PP.52-72 Determinants of Import in Nigeria: Application of Error Correction Model Bayo Fatukasi Department of Economics, Adekunle Ajasin University, Akungba-Akoko, Ondo State & Bernard Olagboyega Awomuse Dept. of Mathematics and Statistics Rufus Giwa Polytechnic, Owo, Ondo State Abstract This paper assesses the determinants of demand functions for import in Nigeria using variables Real Gross Domestic Product (RGDP), External Reserves (EXTR), Real Exchange Rate (REXCH), and Index of Openness (OPNS) as determinant factors. The central aim of the study is to investigate the behavior of Nigeria’s aggregate import demand and its determinant (function) and then analyse the data from the period 1970 to 2008 and based on the above objectives, proffer policy proposals based on the results obtained from the analysis, for the optional management and control of Nigeria’s import demand. All the data used for the total import. Independent variables were obtained from the Central Bank of Nigeria (CBN) year 2008 golden jubilee edition of statistical bulletin. The error correction model (ECM) approach was employed for analysis. The results reveal that the error correction model (ECM(-1)) is significant. This shows that a long run relationship exist among the quantity of import demand and its determinants over sample period of 1970 to 2008. The statistical significance of the lagged error correction model ECM(-1) suggests that the aggregate import...

Words: 6806 - Pages: 28

The Impact of Chinese Investment and Trade on Nigeria Economic Growt

...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is......

Words: 9274 - Pages: 38

Manufacturing as an Engine of Growth

...Title: Economics of Developing Countries II. Course Code: 153400109/1. Marker’s Name: Dr. Sahar Taghdisi Rad. Degree: BSc Economics (Year 3). Essay Question: Is the rapid growth of manufacturing a necessary condition for successful economic development? Assignment: 2. Word Count: 2486. Introduction The consensus view amongst most economists is regarding the vitality of the manufacturing sector; with Nicholas Kaldor arguing that it is the ‘engine of growth’ for an economy. Kaldor discussed that in a poor country’s initial developmental stage, the agricultural sector will play a crucial role, mainly in providing a surplus for growth. But for the country to become developed and rich, there will be no substitution to the development of the manufacturing sector (Kaldor, 1967). “Since the industrial revolution in the eighteenth century manufacturing has been considered to be the main engine of economic growth and development. In development theory, structural change was associated specifically with a shift of resources from the primary sector to the manufacturing sector” (Szirmai, 2011; 5). Kaldor referred to this structural change in a similar way as a “characteristic of the transition from immaturity to maturity” (Kaldor, 1967; 7). Why is manufacturing considered to be so important for development? Why might a poor country want a large manufacturing sector? Majority of this essay will attempt to answer these questions using ‘Kaldor’s Growth Laws’ and......

Words: 3085 - Pages: 13