ADSU International Journal of Applied Economics, Finance and Management

Impact Of Trade Liberalization And Political Instability On Economic Growth In Nigeria

Abstract

This study examines the impact of trade liberalization and political instability on economic growth in Nigeria over the period 1996 to 2023.Specifically the following objectives are pursued in this study. First, it investigates the impact of trade liberalization on economic growth in Nigeria. Second, it determines the impact of political instability on economic growth in Nigeria. Third, examines the interactive impact of trade liberalization and political instability on economic growth in Nigeria and lastly, the fourth objective which determines the causal relationship between trade liberalization and economic growth in Nigeria. The study applies the econometric technique, known as: Autoregressive Distributed Lag (ARDL) Model modelling. The results indicated that the interactive impact of trade liberalization and political instability on economic growth in Nigeria is found to be negative and statistically significant. Therefore, the study recommended that policy makers should focus on addressing political instability by implementing strategies to mitigate risks and create a stable investment environment. policy framework should be developed to ensure stability in political and trade liberalization concurrently for promoting a stable and conducive investment environment in Nigeria.