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
Date Written: June 1, 2016
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
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