Dynamics of Foreign Trade and Trade Relation Problems: Policy Options for Nigeria

Ekesiobi, Chukwunonso; Ifebi, OE; Ibekilo, BC; Onochie, JD

doi:10.4314/afrrev.v5i1.64508

Cited by 5 publications

(7 citation statements)

References 8 publications

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“…First, the country's profile in terms of our major research interests (international trade, FDI, and CO2 emissions) is very compelling. Nigeria accounts for over 73 percent of trade and commerce between "Economic Community of West African States (ECOWAS)" countries (Ekesiobi et al, 2011;Oguanobi et al, 2016;Ekesiobi and Dimnwobi, 2021;Okafor et al, 2021), Economist, 2018), Nigeria stands out as a conspicuous outlier that has witnessed a steady increase in anthropogenic GHG emission since the beginning of the century (Maduka et al, 2022). Nigeria, Dimnwobi et al, 2017;Ude and Ekesiobi, 2015).…”

Section: Introductionmentioning

confidence: 99%

Modelling International Trade, Foreign Direct Investment, and Carbon Emission Nexus in Nigeria: A Reconsideration of the Pollution Haven Hypothesis

Ekesiobi

Emmanuel

MGBEMENA

et al. 2022

Preprint

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We model the impact of international trade and FDI on carbon emission in Nigeria to test the pollution haven hypothesis between 1981 and 2020 using the ARDL approach. The study utilises the Lee-Strazicich (L-S) unit root test to check for possible breaks since the traditional unit root test treats breaks as unit roots. The L-S result indicates the presence of structural breaks between 2006 and 2017. Additionally, we check for cointegration using the ARDL-bounds test and causal nexus using the Toda-Yamamoto granger causality test. The cointegration result suggests the existence of a long-run relationship among the variables, while the causality test indicates that FDI causes carbon emission, whereas international trade and carbon emission influence each other. The ARDL estimates show that international trade and FDI reduce carbon emissions in the short run. However, international trade and FDI positively affect Nigeria's carbon footprint in the long run, supporting the long-run polluter haven. Including an institutional variable, government regulation positively impacts short-run CO2 emissions while slowing CO2 discharge in the long run. The moderation effect shows that FDI and regulatory quality interaction increases Co2 emissions in the short run, but over the long run, pollution declines. International trade and regulatory interaction reduce carbon emissions in the short and long run. The study advises that Nigeria should attract green supporting FDI, encourage trade in green technology and strengthen regulatory quality to checkmate pollution activities of industries. JEL Codes: F18, F21, K20, F24, Q53

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Section: Introductionmentioning

confidence: 99%

Modelling International Trade, Foreign Direct Investment, and Carbon Emission Nexus in Nigeria: A Reconsideration of the Pollution Haven Hypothesis

Ekesiobi

Emmanuel

MGBEMENA

et al. 2022

Preprint

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“…Trade openness is the measure of the extent of freedom that exists in an economy for trade between countries. The contentions among economists of various era is how, what, when and why nations should embrace trade [2]. The aim of this study was to examine the impact of trade openness on total tax and trade tax revenues in Nigeria between 1981 and 2018, so as to provide insight into how effective or otherwise trade policy had been both in the short and long run.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Trade Openness on Trade and Tax Revenues in Nigeria (1981-2018)

Abaneme

Onakoya

2021

AJEBA

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The challenge to provide enough resources to fund infrastructure development has been the bane of most developing countries like Nigeria. The appropriate economic and trade policies to deploy to increase revenue generating capacity of the government become compelling. This study examined the impact of trade openness on trade and tax revenue in Nigeria between 1981 and 2018. The study employed Augmented Dickey Fuller and Phillip Peron tests to conduct the stationarity tests. Akaike Information Criterion and Final Predictor Error provided the best lag lengths. Johansen cointegration test was used to determine the long run relationship. The study employed Vector Error Correction Model for the regression analysis while T- test and F test were also done to confirm the statistical significance of the variables and the models. For autocorrelation problem, Breusch-Godfrey serial correlation LM test were conducted and other post- estimation tests were also used. The result of the study showed that trade openness was negatively related with total tax revenue and with trade tax revenue (CED). The results indicate that a unit increase in trade openness leads to 11.58% decrease in trade revenue from CED and 13.69% decrease in total revenue. Trade openness as a policy to increase tax revenue was not beneficial to the country. Trade openness should be adopted with manufacturing and productive sector orientation in mind. In addition, tariff rates should be reviewed, and the tax structure should be transparent, and judicious use of tax resources should be implemented by government.

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“…The main reason behind this trade imbalance in favour of China is due to different economic structures of the countries as manufacturing is an important feature of Chinese economy and oil characterized Nigerian economy (Mathias et al 2012). Despite the trade imbalance between Nigeria and China, the two countries bilateral relations have not been bereft to unhealthy trade, unfair cooperation and increased exploitation (Ekesiobi et al, 2011). Nigeria and China were giant economies in their continent aim to lead and become the world's top 20 economies in the near future to come.…”

Section: Introductionmentioning

confidence: 99%

“…In term population, being the most populous country in Africa (Nigeria), and the most populous country in the world (China) both countries stands a better chance to gain from trade with one another. China has been among the world economic powerhouse since the on-going shift in global trade imbalance favouring developed countries at the expense of developing world, so also Nigeria can lead African continent given its available resources (Ekesiobi et al, 2011). It is believed that there exists no bilateral trade between China and any of other African countries that are growing, and developing faster positive change and impacting on peoples' lives than the one that exists between Nigeria and China (Margaret and Qi, 2011).…”

Section: Introductionmentioning

confidence: 99%

Nigeria-China: An Examination of Recent Bilateral Trade Relations

Ibrahim

2020

Int. j. appl. res. soc. sci.

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This study examines the trends, composition, and intensity of Nigeria-China bilateral trade for the period, 1992-2016. Tables, graphs, and trade intensity formula were used. The results show that Nigeria’s trade with China has considerably recorded remarkable growth. With the exception of mineral fuels and products of their distillation, the share of major products exported to China over the period remained insignificant. More importantly, the results reveal that the share of major products imported from China remained significant, indicating that Chinese exports supply to Nigeria is more diversified than that of Nigeria's exports supply to China. Nigeria’s trade intensity index shows a low possibility of increasing export to China and a high possibility of increasing import from China. In the case of China, there is exists a high possibility of increasing its export and decreasing its import to and from Nigeria. Based on the study’s findings, the study recommends an urgent need for Nigeria's government to encourage the export of various products in order to promote bilateral trade and mitigate the existing trade imbalance. The study further recommends the need for government, researchers, and export promotion agencies to identify new market opportunities for Nigeria's exports in the Chinese market.

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Dynamics of Foreign Trade and Trade Relation Problems: Policy Options for Nigeria

Cited by 5 publications

References 8 publications

Modelling International Trade, Foreign Direct Investment, and Carbon Emission Nexus in Nigeria: A Reconsideration of the Pollution Haven Hypothesis

Modelling International Trade, Foreign Direct Investment, and Carbon Emission Nexus in Nigeria: A Reconsideration of the Pollution Haven Hypothesis

The Impact of Trade Openness on Trade and Tax Revenues in Nigeria (1981-2018)

Nigeria-China: An Examination of Recent Bilateral Trade Relations

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