Impact of Trade Openness on Industrialization in Nigeria

Abstract

The state of Nigeria as regards the effect of trade openness on industrialization is a major concern. This research helps to evaluate this effect. The variables show a long-run relationship, using Bound Cointegration test. The final analytical result was gotten using ARDL (Auto-Regressive Distributed Lag) Co-integration and Long-run form. The results show that trade openness is not significant, and it is negatively related to industrialization. The implication of this is that it hinders industrialization in Nigeria. This is due to excess importation and infrastructure deficit, alongside other factors. The study recommended that existing policies should not be waved aside; there should be engagement in international industrial competitiveness, and stabilization of exchange rate.