ABSTRACT

The study empirically examined the impact of terms of trade on the growth of Nigeria economy (1980-2016). The specific objectives include are; to ascertain the impact of terms of trade on economic growth of Nigeria and to determine the relationship between terms of trade and economic growth of Nigeria. Secondary data used for the study were source from Central bank of Nigeria statistical bulletin and Nigeria bureau of statistics bulletin and were analyzed with trend analysis, simple regression model and correlation coefficient using the Ordinary Least Squares (OLS) method. The result reveals that terms of trade has positive and significant impact on gross domestic product of Nigeria. The correlation result shows that there is positive relationship between terms of trade and gross domestic product of Nigeria.. It is recommended both federal and state government should put in place policies that promote industrialization and enhance domestic production. This may be done by formulating and implementing dynamic terms of trade and keeping trade openness rate below or at ceiling level in order to ensure economic growth, since terms of trade has positive and significant impact on economic growth of the country…