Impact of Trade Paradigm Shift on Nigeria's Trade Relations

British Journal of Economics, Finance and Management Sciences, Vol. 12(1), p. 67-82, 2016

15 Pages Posted: 15 Sep 2016 Last revised: 25 Apr 2018

See all articles by Samuel Okafor

Samuel Okafor

Nnamdi Azikiwe University - Department of Economics

Olisaemeka Maduka

Nnamdi Azikiwe University - Department of Economics

Patricia Okafor

University of Jos

Victor Akandu

Independent

Date Written: June 1, 2016

Abstract

Shift to competitive advantage regime has distorted the pattern of trade relations among trading partners within MDCs and LDCs. Frequent adjustments of trade relations among trading partners are currently taking place in different countries of the world in order to achieve fair deals in global trade transactions. This study focused on Nigeria as a typical LDC grappling to cope with the challenges of adapting to the new trade regime. It sought to determine how the change in trade paradigm had impacted on trade relations between Nigeria and its trading partners. The study covered the period, 1979-2014. Data were analyzed using histograms and inferential statistics of t ratio and coefficient of relative variability (V). Results indicate that: (1) Shift in trade paradigm had resulted to the displacement of UK, Germany and USA by Togo, China and Australia as major exporters to Nigeria (2) Change in ruling trade paradigm resulted to emergence of India, Cote d’Ivoire and Brazil as major importers from Nigeria (3) Nigeria’s BOT with its trading partners were more volatile during competitive advantage regime (4) Nigeria had recorded adverse BOT with Brazil, India, China and Togo during the competitive advantage regime. It was concluded that the survival strategy of Nigeria, and indeed the LDCs depends on their capacity to wield great comparative advantage strength from their competitive advantage weakness through regional economic co-operation. It was recommended, inter alia, that only isolation to trade liberalization is all that was required to nurture the tender firms and industries of LDCs.

Keywords: Trade Paradigm Shift, Nigeria's Trade Relations, Impact Analysis, Descriptive Survey

Suggested Citation

Okafor, Samuel and Maduka, Olisaemeka and Okafor, Patricia and Akandu, Victor, Impact of Trade Paradigm Shift on Nigeria's Trade Relations (June 1, 2016). British Journal of Economics, Finance and Management Sciences, Vol. 12(1), p. 67-82, 2016. Available at SSRN: https://ssrn.com/abstract=2838960

Samuel Okafor (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

Olisaemeka Maduka

Nnamdi Azikiwe University - Department of Economics

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

Patricia Okafor

University of Jos ( email )

PMB 2084
Department of Public Law
Jos, North Central Zone 930003
Nigeria

Victor Akandu

Independent

No Address Available

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