The Importance Of Shipping To The Economic Development Of Nigeria

The Importance Of Shipping To The Economic Development Of Nigeria

ABSTRACT

The study investigates the impact of Ocean payload trade on Nigeria’s profitable development, covering the period, 1976- 2006. Ocean payload trade in thousands of tones served as the independent variable in all the three thesis defined while, the gross domestic product Nigerian value of external reserve served as the dependent variable.

The three suppositions were actually tested for the following conclusions to be reached

1) Payload import trade has actually wielded a positive effect on the frugality as a whole.

2) Shipment Export Trade exerts a significant positive effect on the position external reserve in Nigeria.

3) Akin to the two exposures above, the Shipmen Export Trade exerts a significant effect on the position of Nigeria’s external debt payment, especially for the period under disquisition, 1976- 2006.

The findings of this study thus, bring to the spotlight the need for the ensuing recommendations

With the perceived weak institutional setting, there’s thus the need to ameliorate the institutional setting in order to boost external trade donation to the profitable as a whole. Indeed though Shipment Export has been set up to contribute appreciatively to the frugality generally, whether in terms of donation to gross domestic product, external reserve or external debt payment, one is tempted to say that further benefactions would have been recorded with strong institutional setting.

also, the poor translucency and corruption that appear to be aboriginal in our country call for combined trouble to make for an bettered performance.

Chapter One

Preface

Background

Shipping has for a long time been honored as one of the strong catalysts for socio- profitable development. Back in 1776, Adams Smith noted that ’’ A business working in a country city without links to the outside world can noway achieve high situations of effectiveness because its small request will limit the degree of specialization ”. Because distances, it has since the ancient times been at the frontward front of opening up of the world and therefore a major motorist in of the process of globalization. Shipping, especially vessel shipping has been both a cause and effect of globalization. Container shipping could lay claim to being the world’s first truly global assiduity. In fact vessel shipping could claim to be the assiduity which, further than any other, makes it possible for truly global frugality to work, it connects countries, requests, business and people, allowing them to buy and vend on a scale not preliminarily possible. It’s now insolvable to imagine world’s trade, and eventually our lives as consumers, without vessel shipping. Shipping has led to a phenomenal growth in world wares trade, which has constantly grown faster than affair. In 2006, goods loaded at anchorages worldwide are estimated at7.42 billion tonnes, over from5.98 billion tonnes 2000. The value of total world import increased fromUS$ 6,454 billion in 2002 toUS$ 40,393 billion in 2005 representing an increase of 64 per cent.

Statement Of Research Problems

The maritime assiduity is transnational in nature and is conceded to be a veritably dynamic element in the socio- profitable configuration of any given maritime nation. Nigeria is no exception. Indeed land- locked countries similar as Mali and Burkina – Faso in West Africa also depend, their profitable fortunes on the maritime sector counting as it were on the harborage on Abidjan for import and import deals. One major problem that has continued to persecute the assiduity in Nigeria is the issue of acceptable policy expression and perpetration, hence the donation of shipping trade to profitable growth has thus being a subject of debate.

In traditional maritime nations similar as United Kingdom,U.S.A, the SSA, the Scandinavians, Other European Countries among others, the factors of time, power planning, collaboration and perpetration of clear- cut programs through government intervention largely regard for the enviable situations of effectiveness, complication and monumental success in their maritime conditioning especially in respect of its donation to profitable growth. The rear appears to be the case in Nigeria as the fortunes of the assiduity have continued to suffer progressive catastrophe over the times. A veritably near illustration is the fact that the Nigerian National Shipping Line( NNSL) which took delivery of 19( nineteen) brand new tonnages from European ockyards in 1979 and 1980, has not only lost all her vessels but has been liquidated altogether. This is complicated by the incapability of governments of different types to float an indigenous public carrier up till date.

thus, the introductory questions that will agitate the mind of the experimenter include the following.

a. What has been the trend and pattern of shipping or maritime trade in Nigeria?

b. What are the causes of the trends in the shipping trade?

c. What has been the impact of shipping trade on profitable growth in Nigeria using profitable pointers of Gross Domestic Product( DPD), External Reserves and Debt Services payment as barometers?

Ideal Of The Study

The central ideal of this study is to empirically determine the impact of ocean shipping import trade on Nigeria’s profitable development. Specifically, the study intends to negotiate the following

1. To determine the relationship between ocean shipping import trade and Nigeria’s gross domestic product.

2. To ascertain the influence of ocean shipping import trade on Nigeria’s external reserve.

3. To determine whether ocean shipping import trade significantly influences the position of external debts payment.

4. To insulate policy constraints towards the effective use of ocean shipping import trade to boost frugality and proffer policy recommendation.

exploration QUESTIONS

Having stated the below objects, we thus, consider the following exploration question for the study?

1. What’s the nature of relationship between ocean shipping import trade and Nigeria’s profitable development?

2. To what extent has ocean shipping import trade told the position of Nigeria’s gross domestic product?

3. What’s the influence of ocean shipping import trade on Nigeria’s foreign exchange reserve?

4. To what extent has ocean shipping import trade told Nigeria’s debt service payment?

5. What are the policy constraints toward the effective use of ocean shipping import trade admit in Nigeria?

Exploration Suppositions

In order to carry out an acceptable exploration work, and to dissect the relationship of the demanded variables, we shall make the following suppositions H01 Three is no significant relationship between ocean shipping import trade and the Gross Domestic product.

H02 There’s no significant relationship between ocean shipping import trade and external reserve.

H03 There’s no significant relationship between ocean shipping import trade and external debts payment.

Significance/ Defense Of The Study

There’s no gain saying the fact that the issue of profitable growth and development is one of the most sensitive issues in Nigeria of moment. One reason for the perceptivity of this issue is the script of menial poverty in the land of fat as in the case in Nigeria. The reason for this boils down to the fact that every reasonable Nigerian position of underdevelopment. The generation yet future is indeed ladened and vended to profitable slavery because of the present position of poverty and poverty.

A exploration work on such a sensitive matter as the relationship between profitable development, external reserve, debt payment and ocean shipping import trade in Nigeria, is thus at this time a necessity. The need to give a continuing result to the problem of underdevelopment, menial poverty, ethnical clashes, Niger Delta Youth profitable growth script, operation of our abundant natural work is thus a task that must be done and hence a defense for this exploration work. Hence, this study is significant.

Compass Of Study

This exploration work aims at covering an overview of the nature of the relationship between the ocean shipping import trade and profitable development in Nigeria, giving special attention to the some pointers of profitable growth in Nigeria – gross domestic product, external reserve and external debt payment. References would be made to other countries which are applicable to this exploration work. The study also covers a period of 31 times, 1976- 2006.

Limitation Of Study

the exploration work has been intended to have an overview analysis of the Nigerian ocean shipping import trade in relation to it profitable development and growth. It would assess the conception of ocean shipping import trade in relation to the current position of profitable growth given special attention to relationship between ocean shipping import trade and some pointers of profitable growth. still, due to time constraints and lack of good data base and information sources in Nigeria and worst still because of lack of the exploration work couldn’t cover all the profitable growth information of the country.