European Journal of Business, Economics and Accountancy Vol. 6, No. 4, 2018 ISSN 2056-6018 Progressive Academic Publishing, UK Page 30 www.idpublications.org TRADE OPENNESS AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA Muhammad M. Yakubu Nile Univ. of Nigeria Abuja & Benedict N. Akanegbu Nile Univ. of Nigeria Abuja ABSTRACT This study has empirically examined the impact of trade openness on economic growth in Nigeria for the period 1981-2017. Using degree of openness as independent variable, the ordinary least squares technique was used on series data to examine the impact of trade openness on Gross Domestic Product (GDP). The series data were extracted from World Bank data 2017. The result of the Analysis shows that all the variables Real Gross Domestic Product (RGDP) Degree of Openness (DOP), FX and Per Capita Income (PCI) were positive and statistically significant at first difference, the study found that the variables are cointegrated and unidirectional causality was found from RGDP to DOP. Therefore, the study recommends that policy makers should adopt policies on trade liberalization such as reduction of non-tariff barriers, reducing tariffs, reducing or eliminating quotas that will enable the economy grow at spectacular rates. Keywords: Trade, Openness, OLS, GDP, Nigeria. INTRODUCTION Trade has been an area of interest to policy makers as well as economists. It enables nations to sell their domestically produced goods to other countries of the world. And it has been regarded as an engine of growth which leads to steady improvement in human status by expanding the range of people's standard of living and preferences (Adewuyi, 2002). Nigeria as a developing country has been grappling with realities of developmental process not only politically and socially but also economically. In 1960s, agriculture was the main stay of the economy and the greatest foreign exchange earner; and Nigerian government was able to execute investment projects through domestic savings, earnings from exports of agricultural products and foreign aids (Ezike, et. al, 2012). But since the advent of oil as a major source of foreign exchange earning in Nigeria in 1974, the picture has been almost that of general stagnation in agricultural exports. This led to loss of Nigeria's position as an important producer and exporter of palm oil produce, groundnut, cocoa and rubber (CBN, 2006). Between the year 1960 and 1980, agricultural and agro-allied exports constituted an average of sixty percent of total export in Nigeria, which is now accounted for, by petroleum oil export, (CBN, 2004). Therefore, this study seeks to answer the following questions thus: a. Does trade openness stimulate economic growth in Nigeria? b. Do trade policies have