ECOWAS ECONOMIC INTEGRATION AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM NIGERIA

Abstract

This paper investigated the impact of regional economic integration on economic growth in Nigeria using the autoregressive distributed lag (ARDL) model for data analysis. The study analysed time series data from 1995 to 2018. The data analysed were collected on gross domestic product growth rate as the dependent variable, ECOWAS intra-trade (which proxied regional economic integration) and human capital (HK)- proxied by secondary school enrolment as independent variables. The empirical results revealed that ECOWAS intra-trade had a positive relationship with economic growth in Nigeria but failed to impact growth significantly as the coefficient of ECOWAS intra-trade failed to pass the significance test at both the 1 and 5 percent levels. The results further revealed that human capital was a growth determinant in Nigeria in the long run. The coefficient of its first lag was positive and passed the test of significance at the 5 percent level. The results of the study confirmed that Nigeria’s economy was yet to harness the much-expected benefits of regionalism. It is recommended that Nigeria should give export diversification and the development of essential industries the much-needed attention in order to enhance trade within the region. Also recommended is the need for Nigeria to intensify and formulate stable trade policies capable of promoting sustainable growth and development towards the growth of the ECOWAS’ Sub-region.