IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 4 NO. 4 2019

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A Global Financial Crises and International Trade – The Impact on Nigerian Exports

Rev. Dr Timothy Nwachukwu

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Abstract

This work was focused on the study of impact global financial crisis on Nigeria’s exports. The years considered for study (14 years) included years before and after 2008, the year the crisis exploded. The methodology used was NLS and ARMA regression as well as Johansen cointegration test. The findings were that the changes in our export revenue were not directly attributed to the consequences of the crises but to structural imbalances in our macroeconomic variables. The decision was to reject the conjectures proposed at the beginning of the research which initially supported the position that the world financial crisis had a significant effect on the Nigerian economy. In conclusion it is apparent that with the level of financial development in the Nigerian financial system which is pale in comparison to that of countries like United States and Germany, the impact of the global financial crisis was not the cause divestments of foreign portfolio from the country, fall in price of crude oil, naira depreciation but structural imbalances in trade policy or bad timing of it’s implementation. Recommendations to study includes conceptualizing and resourceful implementation of long lasting policy measures to address a possible adverse effect of financial crisis on our exports include focusing on changing the growth of demand by improving the supply-side competitiveness. Ensure expenditure reducing policies to limit imports and encourage local production. Improving macroeconomic stability in the long run through diversification away from oil since a Country relying on oil earnings is prone to shock if a financial crisis of epic proportions occurs. Reduction in government spending controlling consumer demands for foreign goods by taxes and interest rates should be properly timed since the interplay of these factors can affect our trade potentials

keywords:

Global financial crises, International trade, impact and Nigerian exports

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