ANALYSIS OF THE IMPACT OF TARIFFS ON ECONOMIC GROWTH IN NIGERIA (1980 - 2010)
ABSTRACT
This study looks at the impact of tariff on the economic growth of Nigeria. It examines the extent to which tariff has brought about economic growth in Nigeria between the period of 1980-2010. Tariff which is a form of tax or trade restriction levied on imported goods, in order to encourage the infant industries from international competitions, this can boost economic growth. The ordinary least square method of regression was used to analysis the relationship between tariff and economic growth. the T-test was used to determine the individual parameter estimate. The F-test was used to determine significance of the entire regression. Econometric analysis also was used to determine the impact of the tariff and other variables like real gross domestic product as a proxy to economic growth, export, exchange rate and trade openness on economic growth in Nigeria. The findings from the regression result show that tariff has a positive statistical significant impact on economic growth in Nigeria. In conclusion, tariff including the other variables all work together to stimulate economic growth. It was recommended that policy on trade should be made to improve tariff imposition in Nigeria.
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