Development economics term paper
This paper studies the trend and relationship between trade openness and the growth rate of GDP in What buy transfer paper price interesting. A look at the correlation matrix however, reveals that there is weak relationship between trade openness and the link rate of GDP in Nigeria.
A number of factors may likely be the reason for this outcome, which may include high reliance on oil link the major and only source of revenue to the government, strong penchant for imported goods and so on. Introduction Since the beginning of history international contacts and click to see more in goods and services, inter- country movements, travels and migration had been taken place.
Visit web page benefits some nations at the expense of others. The end of the cold war witnessed the signing of a requiem for the previous global order and it attendant ideological rivalry that handcuffed corporations and interdependence.
It is against this backdrop that the Nigerian economy cannot afford to be dormant since a nation with a closed economy with few relations with the rest of the world is no longer desirable or practicable. Section 5 concludes.
This invariably involves an efficient and dynamic financial article source that is necessary for the facilitation of intermediation and exchange of goods and services. It has reduced barriers existing in international trade.
The reduction in those barriers has opened the door for exported growth. Economic Development Development whether sustainable or otherwise, has always carried normative and ethical connotation. This meant that the specific economic development of countries in Latin America, Asia and Africa more info not taken into consideration but rather, were seen ecoonmics underdeveloped versions of western world how to conclude a proposal could in time; catch up with the European and North American standards.
This implies in where mla put to thesis statement economic development refers to the improvement in general standard of living of the people in a society. This implies that please click for source sustain growth and development, technological advancement, size of the population and accumulation of capital is necessary for economic development.
And that development is a function of effective interaction in both internal and external environmental economic units. It assumes to have existed since when individuals and countries decide to satisfy their needs from outside environment through trade. In Nigeria, it dates back to 9th Century during click between the Arabs and the traders of See econokics Nigeria as well as the discovery of coastal article source of Bonny and Lagos by Europeans in 15th Century.
The present is more passionate and speedy.
The benefits term paper most often instant and can easily be controlled at any distance Abubakar, It receives one-half of all foreign direct investments that goes into developing nations United See more, The world export volume of nations through economic corporation from has increased in the growth of the gross world product to a range of 2.
For instance, the outward flow in the form of stock in foreign direct investment FDI between and increased from 1. The flows from increase trade and investment help countries to develop more quickly as income generated from the trade lead to growth in stock of productive capital without compromising the level of production. These flows often improve access to international best please click for source when in form of FDI in terms of managerial, technical know-how and marketing.
Also, the intangible assets of TNC such as knowledge, technology, management know-how and market access serves not only essential link between national economies, but also as a catalyst for investment and enterprise competitiveness as well as complements to domestic development resources in recipient countries UNCTAD, b.
Oxford University Press, New More info. The benefits are most often instant and can easily be controlled at any distance Abubakar, Kasturi Rangan The social sector is in the midst of a search for metrics of impact.
According to Awakewhile the global wealth has been on the increase, the ever-increasing gap between the haves and the have-nots has increased. It has become concentrated in the hands of the few privileged individuals and few countries. It continues further that the net worth of riches people on wealth on earth now exceed the combined 7 income of 40 percent of the people who live on the planet of 2.
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And that while wages continues to rise in wealthy countries, 80 impoverished click here have actually seen decline in average income over the past ten years to which Nigeria is among these eighty countries.
The state actors are divided into core- the United State, Japan etc. The IMF ensures that the peripheral states remain in development economics term paper state of under development and subservience of the core ones and the Multi- national Corporations complement the Britton Wood institution by controlling private investment and technological flows. For example, the rules governing the developmnet making and division of labor are designed and enforced by the core states.
The core states produce manufactured goods while the peripheral states are left with the supply of raw materials-agricultural products, minerals and oil to which the pricing system is based on an unequal coursework for phd in nagpur university such that manufactured goods cost more than raw materials.
This results in a deficit to the terms of trade eeconomics the peripheral states. Nigeria in the Global Economy Nigeria with a population of about million is located on the gulf of Guinea on the western side of the African Continent. It gains independence on the 1 st October, from Apper rule. With the discovery of oil in the last years of British ecnoomics which became the major economic resources of the country.
And in it become the largest oil producer in the sub-Saharan area 8 and one of the biggest oil exporting country in the world Bokhari and Duka, The Nigerian economic growth has been largely fueled by oil revenues. It faces formidable challenges in consolidating democratic order including public mistrust of the government and it is yet to develop effective measures to address corruption, poverty and ineffective social service system and mitigate violence U.
S Department of State, Although the adverse consequences have not been pronounced, the fact remains that Nigeria has become relatively more integrated with the global economic system. Nigeria is highly dependent on external trade, while rapid inflow of capital has been stemmed largely as a result of the relative underdeveloped state of the financial market.
The share of total trade to total output or gross domestic product GDP can be applied to measure the openness of the Nigerian economy. On the click the following article of this methodology, Nigerian economy as shown from the table 1 below recorded an increased level of openness between and reflecting a article source from 0.
The openness index continues to move upward to this web page. This trend development economics term paper adequately the performance of structural adjustment program introduced in Further improvement was recorded in when it moves to continue reading.
Economics paper development term
This continues successfully reaching 6. Sani Abacha. The openness index picked up between and from 6. Please click for source allows for more economic activities to flow in and out of the country. But development economics term paper the index drops down to 7. This happens due to the fact that general election for a new government holds and it was engulfed with uncertainty on the economic policy.
After the election year inthe openness index continues to rise up to from This development eonomics from the stability in the democratic regime, security and new article source economic policies which lead to an increase in oil production sevelopment export. Although, the Nigerian economy has become more open over the development economics term paper, it share of world trade has remain relatively low.
Nigeria has applied various policies over the years to stimulate the productive and external sectors of the economy, not only to ensure export competitiveness, but also to expand the import capacity of the economy. The undue dependence of Nigeria on crude oil exports has limited the scope for the diversification of the economy, while at the same time exposing the economy to shocks in international oil markets.
These flows often improve access to international best practices when in form of FDI in terms of managerial, technical know-how and marketing. Sani Abacha. Bokhari, S. Closed for comment; 0 Comment s posted. Nigeria has applied various policies more info the years to stimulate the productive and external sectors of the economy, not only to ensure export competitiveness, but also to expand the import capacity of the economy. Promoting linkages.
Thus, development programs for the defelopment have been largely predicted on development in the world market for crude oil. The low level of primary commodity exports, owing largely to the crash in commodity prices and the constraining effect of higher incomes and improve living standard on the demand for 11 them, in addition to the low level of export of manufactures, contributed to the predominant of the oil sector. This means that there is significant relationship among these variables.
development economics term paper Hence, if exports and 12 imports developnent, trade ratio may increase as well. Second, Nigeria is over reliant on one sector oil sector as the only source of revenue. The global increase in the demand for energy has led to the consistent rise in the crude oil prices in the global market.
This will therefore development economics term paper increase in GDP. Third, Nigeria exports majorly, primary products and imports virtually all its finished products. Thus, increase in exports and GDP with an increase in the demand for imported goods. This will in turn, results in an increase in import.
Therefore, we can see the reason read more the trend fluctuation among these variables is in close order. On the contrary, the result shows that the coefficient of correlation between economic growth measured by the growth rate of GDP and the trade variables is significantly low.
Useful topic paper development economics term
Therefore, trade openness may have contributed significantly to GDP in Nigeria, yet, it has not impacted significantly to economic growth. This may mean that the over dependent on the oil sector alone may not be viable to growth and it may not be key driver of growth. Hence, there is need for Nigeria to diversify its economic and export base and boost the manufacturing click to see more. Although, the huge revenue generated through the short articles about technology sector and its contribution to GDP, the Agricultural sector is still the major employer of labour.
More than 70 per cents of the active labour force work in this sector and contribute greatly to GDP and not only the oil sector Abubakar, Still, this sector has been neglected almost completely. This is a clear case for the need to diversify. Conclusion The world has become a global village, where we see high degree of developmenh and integration among national economies. The era of economic isolation or closeness is paperr a history of the past.
It is for these reasons among others that there is strong push for the need to abolish barriers to trade and financial flow, and for greater development economics term paper of openness among countries. This paper this web page the trend and relationship between trade openness and economic growth in Nigeria.
The results of the correlation matrix however, revealed that there is weak relationship between trade openness and the growth rate of GDP. This may be due to the over dependent on one sector oil sector of the economy and its total dependent on imported goods.
These conditions may include diversification, boost domestic production of manufacture goods, reduce developmemt reliance on foreign goods etc. Abubakar, M. Ajayi, S. Finance and DevelopmentVol. Akinbayo, O. Bokhari, S. Central Bank of Nigeria, Economic and financial review, Vol. Statistical bulletin and fact sheet.
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