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September 5, 2025

Effect of foreign trade on inclusive growth in Nigeria: A vector Error Correction Model (VECM) approach.

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Trade openness has a moderate positive effect on inclusive growth, with a coefficient of 0.006.
Inflation negatively affects inclusive growth, undermining growth inclusivity significantly.
Labour force participation is positively associated with inclusive growth, but foreign direct investment has minimal impact.
Structural rigidities limit short-run effects of trade openness and other variables on inclusive growth.

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Observational analysis revealed trade openness moderately enhances inclusive growth in Nigeria, suggesting macroeconomic adjustments are needed.

Oladapo et al. (2025) studied this question.

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Observational analysis revealed trade openness moderately enhances inclusive growth in Nigeria, suggesting macroeconomic adjustments are needed.