15 eISSN: 2415-007X Pakistan Journal of Humanities and Social Sciences Volume 8, Number 1, 2020, Pages 15 - 22 Journal Homepage: https://journals.internationalrasd.org/index.php/pjhss Impact of Trade Openness on Industrialization in Nigeria Adebayo Mohammed Ojuolape 1 , Deborah Boluwatife Adeniyi 2 , Nusirat Ojuolape Gold 3 , Ayodele Folorunso Oshodi 4 1 Economics Program, School of Social Sciences, Universiti Sains Malaysia (USM) and Department of Economics, University of Ilorin, Nigeria Email: ojuolape.ma@unilorin.edu.ng 2 Department of Economics, University of Ilorin, Nigeria, Email: Adeniyi.deborah@outlook.com 3 Department of Accounting, Kwara State University, Malete, Nigeria 4 Department of Economics, University of Ilorin, Nigeria. ARTICLE INFO ABSTRACT Article History: Received: February 16, 2020 Revised: March 18, 2020 Accepted: March 24, 2020 Available Online: March 31, 2020 The state of Nigeria as regards the effect of trade openness on industrialization is a major concern. This research helps to evaluate this effect. The variables show a long-run relationship, using the Bound Cointegration test. The final analytical result was gotten using ARDL (Auto-Regressive Distributed Lag) Co-integration and Long-run form. The results show that trade openness is not significant, and it is negatively related to industrialization. The implication of this is that it hinders industrialization in Nigeria. This is due to excess importation and infrastructure deficit, alongside other factors. The study recommended that existing policies should not be waved aside; there should be engaged in international industrial competitiveness and stabilization of the exchange rate. Keywords: Trade openness Industrialization Nigeria JEL Classification Codes: P45, L69 © 2020 The Authors, Published by iRASD. This is an Open Access Article under the Creative Common Attribution Non-Commercial 4.0 Corresponding Author’s Email: ojuolape.ma@unilorin.edu.ng 1. Introduction Industrialization is the engine of growth of an economy and a prerequisite for take-off on economic development by any country. It is, therefore, necessary to look into factors that aid its growth, such as trade openness (Jhingan, 2012). Trade of a nation is one of the critical determinants for the improvement of industrialization in developing countries. Trade openness increases the growth of export-oriented industries and the importation of necessary primary and capital goods required for the completion of production. Hence, there can be an enhancement in technology acquisition through trade openness (Okoye, Nwakoby & Okorie, 2016). Different policies have been carried out on the openness of trade in Nigeria, either by reducing or decreasing it to help improve the state of industrialization but most to no avail. This study compares the past to the present, as there were effects of trade policies on industrialization in the past. Hence; showing effective measures or policies that are being neglected. This study seeks to answer the questions below; • Does trade openness help or hinders industrialization in Nigeria? • Is there any long-run relationship between trade openness and industrialization in Nigeria? This study covers the relationships between trade openness and industrialization and their particular importance to the Nigerian economy. The research work analyzed how trade openness affects industrialization in Nigeria. This research uses the ARDL (Auto-Regressive Distributed lag) Co-integrating and Long-run Form regression technique, to test the time series data from 1981-2016, which helped derive policy issues according to the result given. Two other variables (Exchange and Inflation rates) were included to make the model fit for estimation. The period is essential as it captures most policy reforms and response in the industrial sector over time.