EFFECT OF FOREIGN TRADE ON THE NIGERIAN MANUFACTURING SECTOR (1999-2022)
Keywords:
Export, Foreign Trade, Import, Manufacturing SectorAbstract
The main objective of the study is to examine the effect of foreign trade on the performance of the Nigerian Manufacturing sector. The specific objective was to determine the effect of export trade, import trade and balance of payment on the real gross domestic product of the Nigerian manufacturing sector. Ex-post facto research design was utilized in the study. This study sourced secondary data from the Central Bank of Nigeria (CBN) statistical bulletin, spanning a time frame of 24 years, covering the period of 1999 to 2022. The study's data were analyzed using the Ordinary Least Square (OLS) regression method. The test of hypotheses conducted with the regression estimates from Ordinary Least Square showed the following results: Export trade has a positive and significant effect on the gross domestic product of the Nigerian manufacturing sector (p-value = 0.0088); Import trade has a negative and significant effect on the gross domestic product of the Nigerian manufacturing sector (p-value = 0.0145); Balance of payment has a negative and significant effect on the gross domestic product of the Nigerian manufacturing sector (p-value = 0.0092). The study recommends that to further capitalize on the positive effect of export trade, the Nigerian government and manufacturing sector stakeholders should actively promote the diversification of export products and explore new international markets through targeted policies, incentives, and support programs that facilitate product innovation, quality improvement, and market penetration strategies.