ADSU International Journal of Applied Economics, Finance and Management

Trade Liberalization, Human Capital And Economic Growth In Nigeria: A Structural Vector Autoregressive Model

Abstract

The study examined the impact of trade liberalization, human capital, and economic growth in Nigeria. The Structural Vector Autoregressive (SVAR) technique was utilized by applying quarterly time series data from 1986 to 2019 to determine the impact of trade liberalization on economic growth through human capital in Nigeria. The findings revealed the positive and significant impact of trade liberalization on human capital. Also, trade liberalization has a positive and significant impact on economic growth during the study period. Furthermore, human capital has positive and insignificant impact on economic growth in Nigeria. The Impulse Response Functions (IRFs) also revealed a positive and insignificant relationship between trade liberalization, human capital, and economic growth. Based on the findings, it is recommended that the federal government and its federating units should provide opportunities of education for people to develop knowledge, entrepreneurship, and technical skills; and the establishment of standard healthcare centers that will guarantee the healthy living conditions of the people.