The Impact of International Trade on Sustainable Development in Nigeria

ABSTRACT
This paper empirically examined the impact of international trade on sustainable development in Nigeria for the period 1990 to 2023. Using degree of trade openness and foreign direct investment to proxy international trade, ARDL and Johansen Cointegration techniques were employed to estimate the impact of international trade on human development index and carbon emission respectively. The broad objective of this paper is to analyze the impact of international trade on economic growth and environmental quality in Nigeria based on time series data on variables considered to be relevant indicators of sustainable development and international trade. The analysis was based on data extracted from World Bank data and Central Bank of Nigeria Statistical Bulletin. The result of the analysis shows that trade openness variable was statistically significant in both analyses. The study therefore concluded that for Nigeria to harness the full potential of international trade for sustainable development, the government must implement inclusive growth policies, strengthen environmental regulations, and channel foreign direct investment into sectors that support both economic and environmental objectives. Hence, the study recommended that policy makers should enhance trade related infrastructures and adopt policies that promote sustainable trade practices such as promoting cleaner technologies, and incentivizing industries to adopt environmentally friendly practices. This will help to minimize the negative impact of trade on environmental quality, particularly CO2 emissions. This study thus supports the proposition that degree of trade openness has direct robust relationship with economic growth since the proxy variable is positive and statistically significant in the model.
Key Words: International Trade, Trade Openness, Sustainable Development, Economic Growth and Environmental Quality