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Obiora, Roselyn Ukamaka

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The relationship between trade openness and economic growth has been severally investigated by numerous researchers yielding to lots of mixed results. This paper empirically examines the effect of trade openness on economic growth in Nigeria over the period 1990 to 2019, incorporating Per capita income, investments and trade openness as the independent variables and economic growth proxied by Gross Domestic Product as the dependent variable. It used the Johanson co-integration test to test for a long-run equilibrium relationship among the variables, applied the Augmented Dicky Fuller test for Unit root test and the ordinary least squares technique to examine the effect of trade openness on Gross Domestic Product (GDP). The time series data were extracted from World Bank data 2019. The result of the Analysis shows that all the variables; Real Gross Domestic Product (RGDP) Degree of Trade Openness (TOP), Investment (INV) and Per capita income (PCI) were positive and statistically significant, the variables are co-integrated and stationary at first differencing. The study therefore, recommends that policy makers should ensure that policies on trade openness such as reduction of tariffs and quotas etc. are actually adopted to enable the economy grow at the expected rates and also establish policies that focuses on regulation and financing of all sources of imports and exports in the country. Keywords: International Trade, Openness, GDP, Per capita income,Investment

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