Title:
TRADE POLICY AND GROWTH OF SMALL – MEDIUM ENTERPRISES IN NIGERIA

Authors:
UDOH, Francis Sylvanus ,UMOH, Victor A. and EFFIOM, Michael B. ,Nigeria

Abstract:
Nigeria's current trade policy clearly acknowledges the role of international trade in the nation's economy and therefore makes a strong reference to vibrant engagement in bilateral, regional and multilateral trade negotiations, as a way of boosting trade and achieving full integration into the global economy. The trade document entitled: Trade Policy of Nigeria is a bold step in recognizing the need to be proactive at both the regional and multilateral levels of trade negotiations. The study examines the effect of trade policy on the growth of Small – Medium Enterprises in Nigeria. Despite the emphasis placed on trade policy in the management of the economy, the SMEs sector inclusive, the Nigerian economy particularly SMEs are yet to come on the path of sound growth and development. The main objective of this study was to examine the effect of trade policy on the growth of Small – Medium Enterprises in Nigeria, from 1986 to 2017. Ex-post facto research design was adopted and the population of seventy-two thousand eight hundred and thirty-eight (72,838) SMEs in Nigeria was used. The sample size was the entire 72,838 SMEs of which the study relied on reports from World Bank, Central Bank Statistical Bulletin and SMEDAN, thereby employing the Error Correction Mechanism (ECM) tool of analysis to analyse the time series data. The study found that trade policy (proxies: tariff and degree of trade openness) has no positive significant effect on the growth of SMEs in Nigeria. Therefore, the study recommends that trade policy should be set in such a way that the objectives the SMEs wants to achieve through tariff and degree of trade openness should be realistic and feasible in terms of growth.