THE IMPACT OF TRADE LIBERALIZATION ON MANUFACTURING SECTOR IN NIGERIA

THE IMPACT OF TRADE LIBERALIZATION ON MANUFACTURING SECTOR IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

This research work studies trade liberalization how it was put place to rationalize the use of scarce resources to sustain Pareto optimality perspectives and promote efficiency in the development of manufacturing sector in Nigeria.

However, the main aim and objectives of the study is to analyze the importance of trade liberalization coupled with the challenges being faced in development of manufacturing sector in Nigeria, and this is achieved through the analysis of measure like exchange rate liberalization.

The problems identified with the study include the low capacity of Nigeria manufacturing sector in processing of raw materials.

The analytical techniques used are regression analysis which shows positive correlation between the Dependent variable (GDP) and independent variables (inflation rates and average capacity utilization, net import.

The findings finally show that there is high positive correlation between GDP and net export, average capacity utilization

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1     INTRODUCTION

Aside from the fact that trade is inevitable in any economy and because countries are not equally endowed, trade is required as the engine of growth (Robinson, 1999).This is for the major reason why the importance of trade to a nation like Nigeria cannot be overemphasized .This is because, it has realized that most of the Nigeria’s investment funds are directly influenced by the outcome of its source of investment funds depends on its export trade.

Therefore, if trade fails to perform these important roles, serious macroeconomic problem could result. The problems among others include; huge external debt, balance of payment deficit and chronic inflationary pressure (Giddens, 1996).

Niger economy is being referred to as a developing economy rather than developed when compared its level of development with that of other countries that they took off at same time.

However, trade liberalization implies free trade as its origin is classical in nature and it calls for perfect competition, under which a small price taking country will gain by eliminating or reducing tariffs and thus trade almost freely. Trade liberalization increase variably of goods and raises productivity by providing less expensive or higher quickly intermediate goods via free trade.

THE IMPACT OF TRADE LIBERALIZATION ON MANUFACTURING SECTOR IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)