Trade Openness and Poverty Reduction in Nigeria

  • Olufemi Samuel Adegboyo Federal University Oye Ekiti
  • Olubunmi Omotayo Efuntade Afe Babalola University
  • Dominic Olorunleke Olugbamiye Federal University Oye-Ekiti
  • Alani Olusegun Efuntade Federal University Oye-Ekiti
Keywords: Poverty reduction and trade openness

Abstract

This study examines the impact of trade openness on poverty in Nigeria between 1985 and 2020. The study employs Auto-Regressive Distributed Lag (ARDL) estimation technique and the result reveals that domestic credit to the private sector as a ratio of Gross Domestic Product (GDP), electric power consumption, primary school enrollment rate and KOF globalization index reduce poverty in Nigeria, while GDP per capita stimulate poverty in Nigeria. Thus, this study recommends that the economy should be made more open to allow the exportation of goods produced by the poor in order to further reduce poverty. Furthermore, the citizens should be motivated to enroll in school to reduce illiteracy and poverty in Nigeria.

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Published
2021-12-06
Section
Entrepreneurial Perspectives