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Anaylsis Of The Impact Of Tariffs On Economic Growth In Ngeria (1980-2010)
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Tariffs is always seen as a redress to social and economic costs of
trade or as a way of enhancing economic advantages. However, in most
cases economists, argue that erecting barriers on trade impose costs in
the economy that exceeds the benefit gotten. These costs can rise from
insufficient resource allocation, intractable implementation and foreign
retaliation.The precise relationship between tariffs and economic
growth has long remained a difficult theoretical issue that is being
explored in variety of ways. The question often asked by international
and development economists, as well as their supporters is that which
one lead to a faster economic growth, is free trade or protected trade?,
economists are still in search for the acceptable answer to this
question.
1.2 STATEMENT OF THE PROBLEM
Tariffs can be used to
protect infant industries and this tariff has its problem it creates.
High tariff and other forms of trade barriers have been regarded as
impediments to economic growth. The use of tariffs to protect and to
stimulate the production of the import substitution in Nigeria has
obvious problem. By protectingthese industries, inefficiency may be
encouraged.
High tariffs and other forms have burdened consumers with
high price and have shielded producers from international competition.
However a safe guard against frequent tariff changes and high tariff
rates between 1995 to 2005. Nigeria‟s tariffs policy has faced great
challenges of cumbersome and lengthy imports procedures, frequent change
in tariff. High duties on consumer goods widen the gap between applied
and bound rate with their associated negative impact on the economy.
The
Nigeria government can make adequate and reliable tariff policies, and
also encourage this infant industries to produce those goods that tariff
has been impose on; the quality of this goods should match those
formally imported. This study should be able to expose how the tariff
imposed and the structure of this tariff, can make an impact on the
economic growth of Nigeria and how this can improve the economy as a
whole.
1.3 OBJECTIVE OF THE STUDY
The objective of the study are as follows below;
1. To determine the nature of the relationship that exist between tariffs and economic growth in Nigeria.
2. To investigate if tariff actually leads to economic growth in Nigeria.
3. To examine the extent to which tariffs imposition has improved Nigeria‟s economy for the period 1980 to 2010.
4. To identify and analyse the remedy for tariffs impediments inNigeria.
1.4 STATEMENT OF HYPOTHESIS
The working hypothesis for this study is as follow;
1. – Hi: There is no significant relationship between tariffs and growth, thus it has not caused any economic growth in Nigeria.
2. –H0: Tariff has influence and impact on economy growth ofNigeria to an extent.
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ABSRACT - [ Total Page(s): 1 ]This study looks at the impact of tariff on the economic growth of Nigeria. It examines the extent to which tariff has brought about economic growth in Nigeria between the period of 1980-2010. Tariff which is a form of tax or trade restriction levied on imported goods, in order to encourage the infant industries from international competitions, this can boost economic growth. The ordinary least square method of regression was used to analysis the relationship between tariff and economic growth. ... Continue reading---
