You have no items in your shopping cart.
ABSTRACT
The study examined the determinants of demand for imported goods in Nigeria using the annual time series data for the period 1981-2022. The main objective of this research work is to investigate the determinants of demand for imported goods in Nigeria. Augmented Dickey- fuller(ADF) test was used to test for the level of stationary of the variables and they were found to be stationary at first difference. Then Johansen co-integration technique was used to establish if the stationary variables are co-integrated in the long run. Further, ECM(Error Correction Model) is employed to correct any form of disequilibrium in the short run. The result of stationarity and diagnostic tests reveals that the model is well specified and could be used for policy analysis. The analysis was based on data extracted from Central Bank of Nigeria (CBN) statistical bulletin and World Development Indicators (WDI). The study found the level of exchange rate has a negative and insignificant impact on imports in the short run but was found to have a positive and significant impact imports in the long run. Also, the study found that inflation has a positive and significant impact on imports in the short run, but was found to have a negative 9 and insignificant impact on imports in the long run. Also, the study found that gross domestic product has a positive and significant impact on imports in the short run and was found to have a positive and significant impact on imports in the long run. The study found that population has a has a positive and significant impact on import in the short run, but was found to have a negative and insignificant impact on import in the long run. While the study found that interest rate has a positive and significant impact on import in both the short run and long run. It is therefore recommended that policy makers in the short run, implement policies that stimulate domestic production, and in the long run, investment in education, healthcare, and job creation as this would mitigate population growth of import.
