AN ASSESSMENT OF THE ROLE OF ECONOMIC RECOVERY AND GROWTH PLAN (ERGP) IN THE INFLUENCE OF TRADE OPENNESS ON ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

  The impact of trade openness on economic development has sparked significant debate among researchers, academics, and practitioners, especially in developing countries. This study aims to assess the role of the Economic Recovery and Growth Plan (ERGP) in influencing the relationship between trade openness and economic development in Nigeria over eight years period, from January 2013 to December 2020. Utilizing the Autoregressive Distributed Lag (ARDL) model, the analysis reveals that both the ERGP and trade openness have a positive and significant impact on economic development in both the short and long run. Conversely, inflation exhibits a negative and significant relationship with economic development in both time frames. The findings suggest that the ERGP effectively promotes economic development. Therefore, it is recommended that Nigeria adopt trade liberalization policies and continue to implement the ERGP to enhance economic development, particularly in alignment with its established objectives outlined in national blueprints.