Foreign trade plays a vital role in estimating economic and social attributes of countries around the world. The workings of an economy in terms of growth rate and per-capita income have been based on the domestic production and consumption activities and in conjunction with foreign transactions of goods and services. The study focuses on the workings of trade openness on the Nigerian economy. In carrying out this objectives, linear multiple regression analysis was used in assessing various components of trade openness. Ordinary Least Square, (OLS) techniques was used as a statistical tool to achieve these objectives. Data used in this study were extracted from CBN statistical bulletin. From the study findings, export, import, and the degree of openness are all positively related to output (proxy by GDP) by 10% r and adjusted R2 of 0.83 from the period of 1970-2010. From the unit root test, it is see that, all the variables are integrated of order zero. This suggests a long run relationship between the variables. We can also infer from the Engle-Granger Co-integration test that the variables are co-integrated considering the probability values which are all greater than the 5% significance level. The estimated model used in this research work implies that a unit increase in Import and Trade Openness will increase Real Gross Domestic Product by 0.023006 and 29166.11 units respectively. Thus, indicating a positive relationship between Import, Trade Openness and economic growth. Also, Export, Import and Trade Openness contribute about 83% to the total variation in Real Gross Domestic Product in the Nigerian economy. The research findings show that economies grow faster when they are open to international competition. With this, it could be said that, openness to trade is very vital to the Nigerian economy. And so policies that will make export trade more favourably to the Nigerian economy should be encouraged by trade policies arm of the economy.

Foreign trade plays a vital role in estimating economic and social attributes of countries around the world. The workings of an economy in terms of growth rate and per-capita income have been based on the domestic production and consumption activities and in conjunction with foreign transactions ...