IMP ACT OF TRADE LIBERALIZATION ON NON-OIL SECTOR OUTPUT IN NIGERIA (1980-2020)

Abstract

The study examines the impact of trade liberalization on non-oil sector's (agriculture, industrial and solid minerals) output in Nigeria using time series data spanning 1980-2020. The study employed Generalized Method of Moment (GMM) estimator for data analysis. The result of unit root test shows that data were stationary at level and first difference. The findings of structural breaks also show various years of break by the variables. The GMM estimates of the agriculture sector model show that trade liberalization had positive and statistically significant relationship with agriculture and industrial output. However, though significant, it is negatively related with solid minerals output. The degree of linkages among sectors is limited as agriculture seems to have linkages with industrial sector and neither of the sectors seems to relate with the solid mineral sector. The study then suggests that policy makers should as a matter of necessity fashion out policies that can harness the sectoral linkages and potentials in agriculture, industrial and solid minerals. Provide requisite infrastructure (hard and soft) required to tap into the productive activities of the sectors in this age of technology. Also policies that promote local production and discourage importation of certain essential products for trade are desirable in order to enhance the performance of the sectors and promote economic growth in the economy.