The Impact of Tariffs on Trade Openess in Nigeria From 1985 to 2016

Scientific Study from the year 2018 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 2.1, University of Nigeria, course: ECONOMICS, language: English, abstract: This study however, empirically examined the impact of tariff rate on trade openness in Nigeria, relying on annual time series data spanning the period 1985-2016 and using the Engel-Granger two step co-integration test to establish the existence of a stable long run equilibrium relationship among the variables at a 5% level of significance The debate over the effect of tariffs on trade openness is relatively virgin in international trade literature The study employed the Ordinary Least Square (OLS) regression technique and the pairwise granger causality test to validate the nature of the relationship existing between trade openness and tariff rate in Nigeria. Sequel to the regression result, it is found that although tariff variable is statistically insignificant, it has a negative effect on the degree of openness. Similarly, the granger causality reveals a uni-directional causality existing between TOPEN and TARF running only from trade openness to the rate of tariff. The study therefore recommends that since TARF has proven to be an insignificant determinant of trade openness and is thus granger caused by the degree of openness, the government should leave tariff rate to be determined by the invisible hand of the free market-economy and not bother in fixing the tariff rate for the purpose of restricting the free flow of international trade.
About the Author: Ugwuja, Oliver Chinonso is a financial and Business Analyst, a Chartered Manager certified by Nigerian Institute of Management and a certified Safety Officer.. He has been a research consultant since 2016. His position has been of immense help to many scintilating researchers in economics and other related disciplines. His management professsion has helped companies to grow and his writing skill has attracted sponsorship to a lounge where he worked as an inventory controller/internal audit. Oliver Chinonso holds associate membership of different professional bodies which include Chartered Institute of Environmental Health and Safety, (ACIEHS), State of Nevada, USA, Chartered Institute of Customer Relationship Management (ACICRM) and a Graduate of NIM. All these notwithstanding, he aims to reach to the level of becoming one of the giant decision makers in the global economy. Nonso, as he is popularly called, hails from Ejuona Obukpa, Nsukka in Enugu State, Nigeria. His educational background started in Community Primary School, Nkalagu-Obukpa where he obtained his First School Leaving Testimonial (FSLT) in 2006. He also Futhered his Post Primary Education at Saint Teresa's College, Nsukka and graduated as one of the best students in the West African Senior School Certificate Examination (WASSCE) of 2012. He did not stop at that, he, as a result of the love and passion for advancement, went to the University of Nigeria, Nsukka where he studied Economics and graduated with the grade of Magna cum Laude (Second Class Upper Divison Level). While in the University, he joined a Policy Analysis and Research Group and because of his power in logistics and Philosophy, he was given an award as the Critic of the year, 2017. As if that was not enough, Nonso offered so many other Professional Diploma Courses consisting of Graduate Diploma in Health Safety and Environment (HSE) State of Nevada, USA, Post graduate Diploma in Customer Relationship Management from the globally accredited Chartered Institute of Customer Relationship Management.