Navigating Economic Dynamics: Trade Liberalization and Demographic Trends in Nigeria

Abstract

The study examines the complex interplay between trade liberalization and various economic indicators in Nigeria, shedding light on the nuanced dynamics that shape the country's economic landscape. Through rigorous analytical methods such as the Johansen co-integration approach and FMOLS, the research unveils crucial insights into the relationships among trade policies, trade flows, demographic trends, and economic performance. One of the key findings is the negative correlation between trade liberalization and economic growth, challenging conventional wisdom and highlighting the need for a nuanced understanding of the impacts of trade policies on overall economic activity. This underscores the importance of carefully evaluating the potential consequences of trade liberalization measures and adopting strategies that maximize benefits while mitigating adverse effects. On the other hand, the positive association between exports, imports, and economic growth underscores the significance of international trade as a driver of economic prosperity. This highlights the potential for leveraging trade relationships to stimulate economic activity and enhance overall welfare. Moreover, the study's exploration of the role of population growth provides valuable insights into the demographic factors shaping economic dynamics in Nigeria. While the analysis suggests that population growth may not exert a significant direct impact on economic growth, it underscores the importance of considering demographic trends in formulating economic policies and development strategies. In light of these findings, the paper advocates for a multifaceted approach to economic policymaking in Nigeria, emphasizing the need to address structural challenges such as corruption to unlock the country's full economic potential. By prioritizing reforms that promote transparency, accountability, and good governance, policymakers can create an enabling environment for sustainable growth and development, laying the groundwork for a brighter future for Nigeria and its citizens.