Empirical determinants of Malaysia’s trade relation with Nigeria;

It has been observed that extant literature has been devoted to the study of China’s trade relationship with various developing countries, especially Africa and Nigeria in particular. However, the economy of Malaysia is fast growing among other Asian countries as it spreads her trade tentacles with...

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Main Authors: Agboola, Yusuf Hammed, Zainal Abidin, Irwan Shah, Bakar, Normizan
Format: Article
Language:English
Published: 2018
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Online Access:http://repo.uum.edu.my/26545/1/AJMS%206%203%202018%2079%2087.pdf
http://repo.uum.edu.my/26545/
http://www.ajms.co.in/sites/ajms2015/index.php/ajms/article/view/2987
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spelling my.uum.repo.265452019-10-29T01:06:39Z http://repo.uum.edu.my/26545/ Empirical determinants of Malaysia’s trade relation with Nigeria; Agboola, Yusuf Hammed Zainal Abidin, Irwan Shah Bakar, Normizan JZ International relations It has been observed that extant literature has been devoted to the study of China’s trade relationship with various developing countries, especially Africa and Nigeria in particular. However, the economy of Malaysia is fast growing among other Asian countries as it spreads her trade tentacles with very many countries, even Nigeria inclusive has been a member of OIC countries. Notwithstanding this trend, there exists little or no empirical study that has examined empirical determinants of Malaysia’s trade with Nigeria despite evidence of her long-standing relationship with Nigeria. It is these developments that motivated this study. Data were collected on the total export of Malaysia to Nigeria alongside with other variables that are theoretically believed to facilitate trade flows from various sources (UNCTAD, WDI, and CEPII) for the period of 1985-2016. The Gravity model was specified first with the traditional variables and was augmented with other macroeconomic and trade variables that predict bilateral trade flows among different economies. The results showed that economic size and distance between Malaysia and Nigeria were not significant in determining Malaysia’s trade flows to Nigeria. However, in the augmented model, nominal GDP of Nigeria, the distance between the two countries, the real and official exchange rate of Nigeria, and FDI inflows to Malaysia were the positive determinants of Malaysia’s trade with Nigeria. On the other hand, GDP growth rate of Malaysia, per capita GDP of Nigeria, and the real exchange rate of Malaysia negatively determined her trade flow with Nigeria. 2018-03 Article PeerReviewed application/pdf en cc_by http://repo.uum.edu.my/26545/1/AJMS%206%203%202018%2079%2087.pdf Agboola, Yusuf Hammed and Zainal Abidin, Irwan Shah and Bakar, Normizan (2018) Empirical determinants of Malaysia’s trade relation with Nigeria;. Asian Journal of Multidisciplinary Studies, 6 (3). pp. 79-87. ISSN 2348-7186 http://www.ajms.co.in/sites/ajms2015/index.php/ajms/article/view/2987
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic JZ International relations
spellingShingle JZ International relations
Agboola, Yusuf Hammed
Zainal Abidin, Irwan Shah
Bakar, Normizan
Empirical determinants of Malaysia’s trade relation with Nigeria;
description It has been observed that extant literature has been devoted to the study of China’s trade relationship with various developing countries, especially Africa and Nigeria in particular. However, the economy of Malaysia is fast growing among other Asian countries as it spreads her trade tentacles with very many countries, even Nigeria inclusive has been a member of OIC countries. Notwithstanding this trend, there exists little or no empirical study that has examined empirical determinants of Malaysia’s trade with Nigeria despite evidence of her long-standing relationship with Nigeria. It is these developments that motivated this study. Data were collected on the total export of Malaysia to Nigeria alongside with other variables that are theoretically believed to facilitate trade flows from various sources (UNCTAD, WDI, and CEPII) for the period of 1985-2016. The Gravity model was specified first with the traditional variables and was augmented with other macroeconomic and trade variables that predict bilateral trade flows among different economies. The results showed that economic size and distance between Malaysia and Nigeria were not significant in determining Malaysia’s trade flows to Nigeria. However, in the augmented model, nominal GDP of Nigeria, the distance between the two countries, the real and official exchange rate of Nigeria, and FDI inflows to Malaysia were the positive determinants of Malaysia’s trade with Nigeria. On the other hand, GDP growth rate of Malaysia, per capita GDP of Nigeria, and the real exchange rate of Malaysia negatively determined her trade flow with Nigeria.
format Article
author Agboola, Yusuf Hammed
Zainal Abidin, Irwan Shah
Bakar, Normizan
author_facet Agboola, Yusuf Hammed
Zainal Abidin, Irwan Shah
Bakar, Normizan
author_sort Agboola, Yusuf Hammed
title Empirical determinants of Malaysia’s trade relation with Nigeria;
title_short Empirical determinants of Malaysia’s trade relation with Nigeria;
title_full Empirical determinants of Malaysia’s trade relation with Nigeria;
title_fullStr Empirical determinants of Malaysia’s trade relation with Nigeria;
title_full_unstemmed Empirical determinants of Malaysia’s trade relation with Nigeria;
title_sort empirical determinants of malaysia’s trade relation with nigeria;
publishDate 2018
url http://repo.uum.edu.my/26545/1/AJMS%206%203%202018%2079%2087.pdf
http://repo.uum.edu.my/26545/
http://www.ajms.co.in/sites/ajms2015/index.php/ajms/article/view/2987
_version_ 1648740711987675136
score 13.211869