Estimating Aggregate Import-Demand Function In Nigeria: A Co-Integration Approach

Abstract

This paper investigates the behaviour of Nigeria's aggregate imports between the periods 1980-2005. In the empirical analysis of the aggregate import demand function for Nigeria, cointegration and Error Correction modeling approaches have been used. Our econometric estimates suggest that real GDP largely explains the import demand function. This is significant for policy makers as it indicates the ineffectiveness of using exchange rate policy option in influencing import demand in Nigeria.

Keywords: Import; GDP; trade liberalization; cointegration

JORIND Vol. 6 (1) 2008: pp. 18-18