Trade Openness And Inflation: Empirical Explanation Of The Nexus In Nigeria

Musa Abdullahi Sakanko; David Joseph

doi:10.36923/ijsser.v1i2.33

Musa Abdullahi Sakanko ⁽¹⁾ , David Joseph ⁽²⁾

(1) Department of Economics, University of Jos, Plateau State, Nigeria. Email: Sakanko2015@gmail.com , Nigeria

(2) Economics Department, Badamasi Babangida University Lapai, Niger State, Nigeria. Email: josephdavid970@gmail.com , Nigeria

https://doi.org/10.36923/ijsser.v1i2.33

Issue
Vol. 1 No. 2 (2019)

Submitted
April 10, 2019

Published
October 19, 2019

Keywords:

Trade Openness, Trade Opennes, Inflation, ARCH, ARDL Bound Testing

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Abstract

Purpose of the study: The study aims is to examine the effect of trade openness on inflation rate in Nigeria.

Methodology: Time series data were collected from secondary sources. EViews10 (statistical software for data analysis) ware employed to analyze the data collected.

Findings: The results revealed a cointegrating and one-way Granger causality between inflation rate, and trade openness. In addition, both the short-run and the long-run results demonstrate a significant and negative relationship between inflation rate and trade openness in Nigeria.

Application: The study is paramount to the government and policymakers in dealing and taking a decision regarding consumer price index and trade openness in Nigeria. We conclude that the government should work towards full diversification and diversion of the economy from oil export, control, and management of the degree of trade liberalization and the extent to which goods enter the country, and the control of money supplied.

Novelty/Originality: The study accorded to debate on the inflation rate, and trade openness in Nigeria looking, at both short-run and long-run effects, before few accessible studies focused on impact, and trade openness was not measured as the value of net export divided by gross domestic product. Finally, the paper contributed to the scanty of the literature.

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Authors

Musa Abdullahi Sakanko

Department of Economics, University of Jos, Plateau State, Nigeria. Email: Sakanko2015@gmail.com

Sakanko2015@gmail.com (Primary Contact)

David Joseph

Economics Department, Badamasi Babangida University Lapai, Niger State, Nigeria. Email: josephdavid970@gmail.com

Musa Abdullahi Sakanko, & David Joseph. (2019). Trade Openness And Inflation: Empirical Explanation Of The Nexus In Nigeria. Innovation Journal of Social Sciences and Economic Review, 1(2), 35–45. https://doi.org/10.36923/ijsser.v1i2.33

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