SHIPPING TRADE AND ITS IMPACT ON ECONOMIC GROWTH IN NIGERIA

SHIPPING TRADE AND ITS IMPACT ON ECONOMIC GROWTH IN NIGERIA

ABSTRACT

The study examines the impact of ocean shipping trade on Nigeria’s economic development from 1976 to 2015. In all three sets of assumptions, ocean shipping trade in thousand tons served as an independent variable, while gross domestic product, the value of Nigeria’s external reserves, and payment of external debt were used as proxies for the level of economic development. Using time series data, a simple regression analysis was performed. According to the study’s findings, there is a significant and positive relationship between ocean exports and GDP, foreign reserves, and payment of external debt. Under each of the dependent variables, the export shipping trade is also an important factor for Nigeria’s economic development. Based

Based on these findings and conclusions, the study recommended, among other things, that the overall institutional framework in the economy be improved in order to reap the full benefits of the trade expedition to the ocean in Nigeria. Furthermore, it is necessary to improve the lack of transparency, thereby reducing the corruption that appears to be endemic in our country, and thus improving the earnings of the export shipping trade.

CONTENTS TABLE

Certification = Dedication = Acknowledgement = Title page
= = Abstract

Contents table = List of tables = List of figures =

= = = = = = = i = = = = = = = ii = = = = = = = iii = = = = = = = iv = = = = = = = vii = = = = = = = viii = = = == = = = xi == = = = = = = xii

CHAPITRE ONE
1.0 Introduction = = = = = = == = 1
1.1 Background = = = = = = = = = 1
1.2 Statement of the problems = = = = = = 3
1.3 Objectives of the study = = = = = = 4
1.4 Research Questions = = = = = = = 5
1.5 Research Hypotheses = = = = = = 6
1.6 Significance of the study

= = = = = = 6
1.7 Study Scope = = = = = = = 7
1.8 Research limitations
= = = = = = = 8

REVIEW OF LITERATURE IN CHAPTER TWO
2.1 Conceptual structure = = = = = = 9
2.2 World Shipping Status and Trends = = = 16
2.2.1 Global Shipping Industry Overview = = = = 16
2.2.2 Ship type and feature trends = = = = 23
2.2.3 Economic Trends in Shipping = = = = = 25
2.2.4 Current trends in shipping markets = = 27 7

2.2.6 Containerisation’s Global Evolution = = = = 31
2.2.7 Merchant Navy fleet ownership= = = = = 38
2.2.8 Opportunities for Maritime African Countries= = = 42
2.2.9 The Economic Importance of Maritime Trade in Nigeria = 46

CHAPITRE THREE
3.0 Research Methodology and Design = = = = 51
3.1 Definition of Study Area and Population = = = 51
3.2 Data Sources = = = = = = = 51
3.3 Date Analysis Procedure = = = = = = 51
3.4 Variable Operational Definition

/ testing hypotheses 52
3.4.1 Hypothesis 1 = = = = = 52
3.4.2 Hypothesis 2 = = = = = = 53
3.4.3 Hypothesis 3 = = = = = 54
3.5 Significance test = = = = = = = 55
3.5.1 ANOVA model significance test = = = = 55
3.5.2 Model significance testing – Coefficient of determination and the F-Test Approach = = = = = = 57
3.5.3 Explanatory variable significance testing = 58
3.6 Linear regression model assumptions = = 59

2.0 Data Presentation, Analysis, and Interpretation = = = 62
4.1 Introduction = = = = = = = = = 62
4.2 Data Presentation = = = = = = = = 62
4.3 Data Analysis and hypotheses testing = = = = 65
4.3.1 Influence of shipment Export Trade on Economic development = = = = = = 65
4.3.1.1 Test of Model significance – ANOVA method = = 67

4.3.1.2 Test of model significance – R2 method = = = 68
4.3.1.3 Test of the significance of the explanatory variable = 69
4.3.2 The Influence of shipment export trade on

Nigeria
External reserve = = = = = = 70 4.3.2.1 Test of model significance -ANOVA method = = = 71 4.3.2.2 Test of model significance -R2ANOVA method = = 71 4.3.2.3 Explanatory variable significance = 72

4.3.3 The Importance of Export Trade on

Payment on external debt = = = = = = 73
4.3.3.1 Model significance test – ANOVA method= = = 74
4.3.3.2 Model significance test R2= = = = = 75
4.3.3.3 Test of the explanation variable’s significance = 75
4.4 Discussion of Results = = = = = = = 76
4.4.1 Hypothesis 1 = = = = = = = = 76
4.4.2 Hypothesis 2 = = = = = = = = 77
4.4.3 Hypothesis 3 = = = = = = = = 78

CHAPTER FIVE
5.0 Summary, Conclusion And Recommendations = = 79
5.1 Summary of findings = = = = = = = 79
5.2 Conclusion = = = = = = = = = 80
5.3 Recommendations = = = = = = = = 80
Bibliography= = = = = = = = 82 Appendices = = = = = = = = = 86

LIST OF TABLES

2.1 Distribution of the world fleet and DWT capacity of containers by country

Group – beginning

2007 40

2.2 Freight costs expressed as a percentage of import value

41 3.1 Hypothetical ANOVA table 56 for various regions of the world

4.1 Total ocean shipment exports from Nigeria in thousands of tons, GDP,

External reserves and debt service in millions of naira, 1976-2006 63
4.2 Hypothesis 1 Outcome / Result 66
4.3 Hypothesis 2 output / result 70
4.4 Hypothesis 3 Outcome / Result 73

LIST OF IMAGES

2.1 World Fleet Composition 20
21.2.2 Shipping Statistics Table
2.3 Shipping Market Structure 27
2.4 World trade in merchandise (exports FOB) 28
2.5 Global Containerization Evolution 32
2.6 Expansion of containerized shipping 33
2.7 Container vessel size evolution 35
2.8 Regional distribution of global container traffic 38