Using quarterly data between 1981q1 and
2018q4, the paper investigates the relationship between trade liberalization
and economic growth in Nigeria. Exploring Johnasen cointegration technique and
the Vector Error Correction (VEC) method, the paper considers three alternative
measures of trade liberalization to determine whether the response of economic
growth to trade liberalization is sensitive to the choice of the indicators of
trade liberalization under consideration. The paper finds significant effects of
trade liberalization on the economy. The paper recommends that government
should implement policies that will promote trade openness in Nigeria. This may
be achieved by establishing bilateral and multi-lateral agreements that are
favourable and that will support appropriate technology transfer to domestic
JEL classification numbers: F31, F13, F41.
Keywords: Trade liberalization, Tariffs, Economic growth, Nigeria.