Panoeconomicus 2017 Volume 64, Issue 3, Pages: 297-314
https://doi.org/10.2298/PAN150130029A
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Trade openness and industrial growth: Evidence from Nigeria
Adamu Fahad Muhammad (Federal Ministry of Science and Technology, Kano State, Nigeria)
Dogan Ergun (Çankaya University, Ankara, Turkey)
This study examines the long-run and short-run relationship between industrial production and trade openness in Nigeria during the period from 1986 to 2008 by using quarterly data. It employs the ARDL bounds testing methodology developed by M. Hashem Pesaran, Yongcheol Shin, and Richard J. Smith (2001). The results of both the long-run analysis and the short-run error correction model (ECM) indicate that trade openness has a significant and positive impact on industrial production. The Toda-Yamamoto causality analysis shows that there is one-way Granger causality, running from trade openness to industrial production.
Keywords: trade openness, Nigeria, co-integration, ARDL method