Trade, Diversification and Growth in Nigeria

Walkenhorst, Peter and Cattaneo, Olivier (2006): Trade, Diversification and Growth in Nigeria.

Abstract

Nigeria’s trade policy is at a crucial turning point. Historically, the country has had a very restrictive import regime that generated substantial transfers to domestic producers and strong anti-export bias. Yet, in its current poverty reduction strategy, Nigeria identified deeper trade integration as a means to foster economic growth and alleviate poverty. Border tariffs are being reduced, trade regulations are under review, and ambitious modernization programs for customs services and port infrastructure have been launched. The envisioned reforms involve far-reaching changes to the trade regime that promise to create new opportunities by improving the efficiency of production and consumption, while requiring adjustment of domestic producers to the new, more competitive economic environment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade; tariffs; regional integration; preferences; world markets
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

References

Akinlo, A.E., 2004. “Foreign Direct Investment and Growth in Nigeria: An Empirical Investigation.” Journal of Policy Modelling 26(5): 627-39.

Alexandraki, K., and H. P. Lankes, 2004. The Impact of Preference Erosion on Middle-Income Developing Countries. Working Paper WP/04/169. International Monetary Fund, Washington DC.

Amiti, M., and J. Konings, 2005. Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia. IMF Working Paper No. 05/146, Washington DC.

Anderson, K., W. Martin, and D. van der Mensbrugghe, 2005a. Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes World Bank Policy Research Paper 3736. World Bank, Washington, DC.

Anderson, K., W. Martin, and D. van der Mensbrugghe, 2005b. Would Multilateral Trade Reform Benefit Sub-saharan Africans? World Bank Policy Research Paper 3616. World Bank, Washington, DC.

Arimah, B.C., 2001. “Nature and Determinants of the Linkages between Informal and Formal Sector Enterprises in Nigeria.” African Development Review 13(1): 114-144.

Brenton, P., and T. Ikezuki, 2004. The Initial and Potential Impact of Preferential Access to the U.S. Market under the African Growth and Opportunity Act. Policy Research Working Paper No. 3262. World Bank, Washington, DC.

Brenton, P., and H. Imagawa, 2004. “Rules of Origin, Trade and Customs.” In De Wulf, L., and J. Sokol (editors), Customs Modernization Handbook. World Bank, Washington, DC.

Bureau of Public Enterprises (BPE), 2005a. “Ports Concessioning: Impact Analysis.” Abuja.

Bureau of Public Enterprises (BPE), 2005b. “Status Report.” Abuja.

Busse, M., and H. Großmann, 2004. Assessing the Impact of ACP/EU Economic Partnership Agreement on West African Countries. HWWA Discussion Paper 294. Hamburgisches Welt-Wirtschafts-Archiv, Hamburg.

Carrère C., and J. De Melo, 2003. “A Free Trade Area of The Americas: Any Gains for the South?” Working Paper. Third Workshop of the Regional Integration Network. Punta del Este.

Central Bank of Nigeria, 2004. Statistical Bulletin. Abuja.

Dollar, D., and A. Kray, 2001. Trade, Growth and Poverty. Working Paper No. 2615. World Bank, Washington DC.

Economic Community of West African States (ECOWAS), 2004. “Evaluation des Recettes et Dépenses de la Communité (2004-2007).” Commission de l’Administration et des Finances, Abuja.

Economic Policy Positioning, 2005. “Analyzing Financial Flows between the Federal Republic of Nigeria and Public Enterprises.” Draft Positioning Paper No. 4, Abuja.

Emini, C.A., J. Cockburn, and B. Decaluwé, 2005. “The Poverty Impacts of the Doha Round in Cameroon: The Role of Tax Policy.” In Hertel, T.W. and L.A. Winters (eds), Putting Development Back into the Doha Agenda: Poverty Impacts of a WTO Agreement. World Bank, Washington, D.C.

Estevadeordal, A., and K. Suominen, 2003. “Rules of Origin in the World Trading System.” Working Paper, Seminar on Regional Trade Agreements and the WTO. World Trade Organization, Geneva

Federal Office of Statistics, 2005a. The Nigerian Statistical Fact Sheets on Economic and Social Development, Abuja and Lagos.

Federal Office of Statistics, 2005b. Draft Poverty Profile for Nigeria. Abuja and Lagos.

Feenstra, R., and Kee, H.L., 2004. Export variety and country productivity. Working Paper 10830. National Bureau of Economic Research, Cambridge/Mass.

Flannery, J., 2005. “National Tourism Development Master Plan: Presentation of Key Conclusions, Outline Strategy, Initial Recommendations, Environment, Early Statistics.” Abuja.

Hagopian, A., M.J. Thompson, M. Fordyce, K.E. Johnson, and L.G. Hart, 2004. “The migration of physicians from sub-saharan Africa to the United States of America: measures of the African brain drain.” Human Resources for Health, Volume 2(17).

Harrold, P., M. Jayawickrama, and D. Bhattasali, 1996. Practical Lessons for Africa from East Asia in Industrial and Trade Policies. World Bank Discussion Papers No. 310, World Bank, Washington DC.

Hausmann, R., J. Hwang, and D. Rodrik, 2003. “What You Export Matters.” Working Paper. John F. Kennedy School of Government, Harvard University, Cambridge/Mass.

Hausmann, R., and D. Rodrik, 2003. “Economic Development as Self-Discovery.” Journal of Development Economics 72: pp. 603-633.

Hertel, T. and L.A. Winters (editors), 2005. Putting Development Back into the Doha Agenda: Poverty Impacts of a WTO Agreement. World Bank, Washington DC.

Hinkle, L.E., and M. Schiff, 2004. “Economic Partnership Agreements Between Sub-Saharan Africa and the EU: A Development Perspective.” World Economy 27(9): 1321-1333.

Imbs, J., and R. Wacziarg, 2003. “Stages of Diversification.” American Economic Review 93(1): 63-86.

Independent Advocacy Project, 2005. “Corruption is Nigeria’s Major Problem.” Press Statement, Lagos.

Jayanthakumaran, K., 2003. “Benefit-Cost Appraisals of Export Processing Zones: A Survey of the Literature.” Development Policy Review 21: 51-65.

Kee, H.L., A. Nicita, and M. Olareagga, 2004. “Estimating Import Demand Elasticities.” Working Paper. World Bank, Washington, DC.

Kee, H.L., A. Nicita, and M. Olareagga, 2005. “Estimating Trade Restrictiveness Indices.” Working Paper. World Bank, Washington, DC.

Kingsley, O.K., O.G. Okechukwu, and A. Adenuga, 2004. “Is Trade Openness Valid for Nigeria’s Lang-Run Growth: A Cointegration Approach.” Working Paper. African Institute for Applied Economics, Enugu.

Klinger, B., and D. Lederman, 2004. Discovery and Development: An Empirical Exploration of ‘New’ Products. World Bank Policy Research Working Paper No. 3450. The World Bank, Washington DC.

Madani, D., 1999. A Review of the Role and Impact of Export Processing Zones. World Bank Policy Research Paper No. 2238. World Bank, Washington DC.

Manufacturers Association of Nigeria, 2004. Annual Report & Accounts 2003. Lagos.

Meagher, K., 2003. “A Back Door to Globalisation? Structural Adjustment, Globalisation & Transborder Trade in West Africa.” Review of African Political Economy 95: 57-75.

Nicita, A. 2004. Who Benefited from Trade Liberalization in Mexico? Measuring the Effects on Household Welfare. World Bank Policy Research Paper No. 3265. World Bank, Washington DC.

Nielsen, T., 2005. “Nigerian Trade Policy.” In International Monetary Fund, Nigeria: Selected Issues and Statistical Appendix. Country Report No. 05/303. Washington, DC.

Nigerian Export Promotion Council, 2004. A Framework of National Export Strategy for the Federal Republic of Nigeria 2005-2010. Abuja.

Nnadozie, E.U., 2004. “Does Trade Cause Growth in Nigeria?” Journal of African Finance and Economic Development 6(1): 54-77.

Olufemi, S.M., 2004. “Trade Openness and Economic Growth in Nigeria: Further Evidence on the Causality Issue.” South African Journal of Economic and Management Sciences 7(2): 299-315.

Organisation for Economic Co-operation and Development (OECD), 2005. Preferential Trading Arrangements in Agricultural and Food Markets: The Case of the European Union and the United States. OECD Publications, Paris.

Oyejide, A.T., 2003. “Trade Reform for Economic Growth and Poverty Reduction.” Development Outreach 5(2): 4-6.

Page, S. and S. Bilal, 2001. Regional Integration in Western Africa. Report prepared for the Ministry of Foreign Affairs, the Netherlands. Overseas Development Institute, London.

Piermartini, R., 2004. The Role of Export Taxes in the Field of Primary Commodities. WTO Discussion Papers No. 4. World Trade Organization, Geneva.

Pinto, B., 1987. “Nigeria During and After the Oil Boom: A Policy Comparison with Indonesia.” World Bank Economic Review 1(3): 419-445.

PriceWaterhouseCoopers, 2005. Sustainability Impact Assessment (SIA) of the EU-ACP Economic Partnership Agreements. Report prepared for the European Commission, Neuilly-sur-Seine.

Rajhi, T. and J.M. Marchat, 2004. “Estimates of the Impact of a Common External Tariff on the Nigerian Manufacturing Sector: Some Simulation Results based on Firm Level Data.” Working Paper. University of Paris-I and World Bank. Paris and Washington DC.

Rankin N., M. Söderbom and F. Teal, 2004. “Exporting from Manufacturing Firms in Sub-Saharan Africa: Micro Evidence for Macro Outcomes.” Working Paper. Centre for the Study of African Economies, Department of Economics, University of Oxford, Oxford.

Revenga, A., 1997. “Employment and Wages effects of trade liberalization : the case of Mexican manufacturing.” Journal of Labor Economics 15(3): 21–45.

Robilliard, A.-S., and S. Robinson, 2005. “The Social Impact of a WTO Agreement in Indonesia.” In Hertel, T.W. and L.A. Winters (eds), Putting Development Back into the Doha Agenda: Poverty Impacts of a WTO Agreement. World Bank, Washington, D.C.

Royal Haskoning, 2002. “Nigeria Port Modernization Project.” Nijmegen.

Ruffer, T., 2004. An Assessment of Nigeria’s Import Prohibitions Policy. Study prepared for the United Kingdom Department of International Development. Oxford Policy Management, Oxford.

Schiff, M, and L.A. Winters, 2003. Regional Integration and Development. Oxford University Press, New York.

Soulé, B.G., 2001. Prospects for Trade between Nigeria and its Neighbors. Organisation for Economic Co-operation and Development, Paris.

Transparency International, 2005. “Corruption Perceptions Index.” Berlin.

United Nations Conference on Trade and Development (UNCTAD), 2005a. World Investment Report: Transnational Corporations and the Internationalization of R&D. Geneva.

United Nations Conference on Trade and Development (UNCTAD), 2005b. UNCTAD Handbook of Statistics. Geneva.

United Nations Economic Commission for Africa (UNECA), 2005. “Economic and Welfare Impacts of the EU-Africa Economic Partnership Agreements.” Working Document. Addis Ababa.

United Nations Industrial Development Organization (UNIDO), 2005. Industrial Development Report. Vienna.

United State Office of the Trade Representative (USTR), 2005. National Trade Estimate Report on Foreign Barriers to Trade, Washington DC.

Watson, P.S., 2001. Export Processing Zones: Has Africa Missed the Boat? Africa Region Working Paper No. 17. The World Bank, Washington, DC.

Winters, L.A., 2004. “Trade Liberalisation and Economic Performance: An Overview.” Economic Journal 114(2): F4-F21.

World Bank, 2004. Global Economic Prospects: Trade, Regionalism, and Development. World Bank, Washington DC.

World Bank, 2005a. World Development Indicators. World Bank, Washington DC.

World Bank, 2005b. Global Economic Prospects: Trade, Regionalism, and Development. World Bank, Washington DC.

World Bank, 2005c. Food Safety and Agricultural Health Standards: Challenges and Opportunities for Developing Country Exports. Report No. 31207. World Bank, Washington DC.

World Bank, 2006a. Global Economic Prospects: Economic Implications of Remittances and Migration. World Bank, Washington DC.

World Bank, 2006b. Doing Business 2006. World Bank, Washington DC.

World Economic Forum, 2005. Global Competitiveness Report 2005-2006. World Economic Forum, Geneva.

World Trade Organization, 2005. Trade Policy Review: Nigeria. Report by the Secretariat. World Trade Organization, Geneva.

World Travel and Tourism Council (WTTC), 2005. Nigeria Travel and Tourism: Sowing the Seeds of Growth. London.