Could Imports Be Beneficial to Economic Growth in Nigeria?

  • Leonard Nosa Aisien Department of Economics, Banking and Finance, Benson Idahosa University, Nigeria
  • Abraham Orobosa Ihensekhien Department of Economics, Banking and Finance, Benson Idahosa University, Nigeria
Keywords: disaggregate import, economic growth, export, human capital, export-led-growth

Abstract

The study examined the impact of import on economic growth using annual time series data from Nigeria for the period 1981 – 2017. Import was disaggregated into consumer goods, manufactured goods, capital goods, raw materials and refined fuel. The impact of each component was estimated separately using the autoregressive distributed lagged model. The aim was to ascertain the economic growth potential of each component of import. The statistical analysis revealed that there was a change in the import composition of Nigeria during the period under study. In the 1980’s, capital good dominated the import basket of Nigeria, with refined fuel constituting less than 1% of total import. However, in the current period, consumer good and refined fuel is dominant with refined fuel constituting 23% of total import in 2017.The empirical results revealed that importation of capital good is growth enhancing, while importation of refined fuel is a drain on the country’s economic growth process. Importation of consumer goods was found not to be a serious growth enhancing import in Nigeria. Human capital development, money supply and export were found to also have significant impact on economic growth in Nigeria. The impact of government expenditure though significant, negatively affect economic growth in Nigeria. It was therefore recommended that strategic policy framework be put in place to encourage the importation of capital goods, accompanied with serious effort at improving the technical base of the labour force. It was also recommended that local refining of fuel should be a deliberate policy of the government.

 

Statistics
Abstract views: 127 , PDF downloads: 161

Downloads

Download data is not yet available.

References

Abiodun, K., (2017). Contribution of international trade to economic growth in Nigeria. 2017. Award for excellence in students research and creative activity- documents.1 retrieved from http://thekeep.eiu.edu/lib_awards_2017_docs/1 

Adeleye, J. O., Adeteye, O. S., & Adewuyi, M. O (2015) Impact of international trade on economic growth in Nigeria. International Journal of Financial Research 6(3), 163 – 172.

Afaf, A. J. S., & Hussain, M. A., (2015) Impact of export and import on economic growth: Evidence from Tunisia. Journal of Emerging Trend in Economics and Social Sciences 6(1), 13 – 21.

Afolabi, B., Danladi, J. D., & Azeez, M. I., (2017) International trade and economic growth in Nigeria. Global journal of human-social sciences. 17(5), 29 – 39. 

Agbo, E. I., Ebere, A. R., & Oluchukwu, E. L., (2018) Impact of international trade on economic growth in Nigeria. European Journal of Business and Management 10(18), 22 – 30.

Ali, A. A,. Ali, Y. S. A & Mohammed, S. D (2018) The impact of imports and exports performance on the economic growth of Somalia. International journal of economics and Finance 10(1), 110 – 119. https://doi.org/10.5539/ijef.v10nlp110.

Bakari, S., & Mabrouki, M. (2016) The relationship among exports, imports and economic growth Turkey. MPRA paper No. 76044. https://mpra.ub.uni-muenchen.de/76044/

Grossman, G.M., & Helpman, E. (1991) Trade, knowledge spillovers and growth. European  economic review 35(2), 517 – 526

Kim, S., Lim, H., & Park, D., (2007) Could import be beneficiary for economic growth? Some evidence from republic of Korea. Asian Development Bank (ADB), Economic and Research Department working paper series No. 103

Lawal, E.O. & Ezeuchenne, K (2017) International trade and economic growth in Nigeria. Journal of humanities and social sciences 22(4), 35 – 43

Mankiw, N. G., D. Romer and D. N. Weil (1992) A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics 107(2), 407 – 437

Mori, K., Dallah, D., Kok, S.C., & Jaratin, L., (2011) Does import affect economic growth in Malaysia? The Empirical Economic Letters 10(3), 297 – 307 

Moyo U. & Mapfumo, A., (2015) Causal relationship between imports and economic growth in Zimbabwe: An empirical analysis 1975 – 2013. The Economic and Finance Letters 2(4), 35 – 44.  

Romer, P. (1990) Endogenous Technical Change, Journal of Political Economy, 98: 71–102.
Published
2019-06-12
How to Cite
Aisien, L. N. and Ihensekhien, A. O. (2019) “Could Imports Be Beneficial to Economic Growth in Nigeria?”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 4(3), pp. 63 - 75. doi: https://doi.org/10.47405/mjssh.v4i3.194.
Section
Articles