Impact of Entrepreneurship and International Trade on Economic Growth and Development in Nigeria

Abstract

This study empirically investigates the impact of entrepreneurship and international trade on economic growth and development in Nigeria from 1990 to 2022. Domestic credit to private sector (DCPS), Exchange rate (EXR), Self-employment (SEEM), Total exports ((TEX), Total imports (TIM) and inflation rate (INFR)were used as dimensions of the independent variable while Real gross domestic product (RGDP) as the dependent variable. Annual time series data were obtained from secondary sources including the CBN annual statistical bulletin, World Bank development indicators. The Eview9 Statistical Software was employed to analyze the data empirically. The Unit root test shows that real gross domestic product, domestic credit to private sector, exchange rate, self-employment, total exports and total imports are all stationary after first difference I(1) while inflation rate was stationary at level I(0). The data were analyzed using the Autoregressive distributed lag (ARDL). The results of the ARDL estimates indicate that in the long run self-employment and total exports coefficients were positively signed and statistically significant which means that increase in self-employment and total exports in Nigeria will increase real gross domestic product (Economic growth) while total imports turned up with a negative sign and also statistically significant. It portends that total import has a negative impact on economic growth and development in Nigeria in the long run. The study recommends amongst others that government should promote entrepreneurship by providing credit and grants to encourage self-employment. Government should also encourage import substitution, promote exportation of locally made goods as this has positive impact on economic growth and development in Nigeria.