DOES TRADE LIBERALIZATION WITH CHINA IMPACT SMALL AND MEDIUM SCALE ENTERPRISES GROWTH IN NIGERIA? AN EMPIRICAL ANALYSIS

Abstract

The dearth of empirical evidence on the benefits of Nigeria-China trade relations regarding trade liberalization cum small and medium scale enterprises growth in Nigeria motivated this research. Utilizing time series data from 1986-2022 sourced from the Central Bank of Nigeria Statistical Bulletin (2023), data were analyzed using the Ordinary Least Squares (OLS) regression method. The study found a positive and significant influence of trade liberalization on SME growth, and a negative and significant link between the volume of trade with China and SME growth in Nigeria. The study concluded that trade liberalization, competitive exchange rates as well as affordable interest rates are critical factors that positively impacts SME growth in Nigeria. However, the specific trade relationship with China poses challenges for local SMEs