ABSTRACT

This work aimed at examining the effect of trade liberalization on Economic Growth in Nigeria from 1970-2014. The data collected are secondary data from the Annual Report and Statement of Accounts and CBN Statistical Bulletin. The unit root test and Co-integration test were carried out, and the model was estimated by OLS. The major findings is that all the variables became stationary after first difference and are integrated to the order one I (1), the co-integration test show that there is no long-run relationship between trade liberalization and economic growth in Nigeria. Based on the findings of the study, the policy recommendation is that, Government should call for a review of the trade liberalization policy, also government should encourage export and minimize its importation by encouraging economic liberalization which favor the domestic market and increasing the productive capacity of Nigeria. Lastly, having discovered that there is no long-run relationship between trade liberalization and economic growth, trade liberalization policy should be pursued under a short-run frame work in order to actualize economic growth.