INTERNATIONAL TRADE POLICY MEASURES AND DOMESTIC INVESTMENT: EFFECTS ON NON-OIL EXPORTS IN NIGERIA

This study empirically examines the effects of international trade policy measures and domestic investment on non-oil exports in Nigeria from 1990 to 2023. Degree of openness, tariffs and quotas were used as the trade policy measures. The study made use of time series data as sourced from World Development Indicators (WDI) of the World Bank, Central Bank of Nigeria CBN) statistical bulletin and National Bureau of Statistics (NBS) reports. The techniques of data analysis adopted include: Augmented Dickey-Fuller (ADF) unit root approach, bounds cointegration test and Autoregressive Distributive Lag (ARDL) approach. The results of the unit root tests showed mixed orders of zero [I(0)] and one [I(1)]. The results of the bounds cointegration tests indicated that there exists long–run relationship among non-oil export, degree of openness, tariffs, quotas and domestic investment. The ARDL results revealed that degree of openness, quotas and domestic investment have a positive and significant effect on non-oil export in Nigeria while tariffs had a negative and non-significant effect on non-oil export in Nigeria in both short run and long run. Premised on the findings, the researcher concluded that the international trade policy measures and domestic investment are significantly vital in promoting non-oil export in Nigeria. Among other things, the study recommended that Nigeria should foster trade openness by negotiating more regional and international trade agreements that provide preferential access for non-oil exports. Greater openness will enhance market access and encourages foreign direct investment, which can improve the competitiveness of non-oil export