Tariff effects on industrial performance: symmetric and asymmetric evidence from Nigeria

IF 1.4 Q3 ECONOMICS
Richard O. Ojike, Marius Ikpe, Joseph Chukwudi Odionye, Sunday V. Agu
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引用次数: 0

Abstract

Purpose

Despite the government’s efforts to protect domestic industries from foreign competition through tariffs, the industrial sector’s contribution to GDP continued to decline in Nigeria. Based on the scenario, this study assessed the symmetric and asymmetric effects of tariffs on industrial performance in Nigeria for the period 1988–2021. Tariff was captured with a tariff rate applied to the weighted mean of all products, while industry value added as a percent of GDP was used as a proxy for industrial performance.

Design/methodology/approach

Linear and nonlinear ARDL techniques were used for the analysis.

Findings

The symmetric (linear ARDL) results revealed that tariffs have a significant positive effect on industrial performance in both the short and long term. The asymmetric (nonlinear ARDL) results showed that a long-term asymmetry exists between tariffs and industrial performance. It revealed positive effects on industrial performance for both positive and negative tariff changes, with the negative change having a greater impact.

Practical implications

Generally, the results showed that the use of tariffs to protect domestic industries in Nigeria promotes industrial performance. The implication is that the declining contribution of the industrial sector to GDP in Nigeria is not a result of the tariff policy. It shows that the government should look beyond tariff policy to enhance the industrial contribution to GDP.

Originality/value

Nigeria should exercise caution in using tariff policies to protect domestic industries to avoid retaliation from their trade partners that could reverse the positive impacts.

关税对工业绩效的影响:尼日利亚的对称和非对称证据
目的尽管政府努力通过关税保护国内工业免受外国竞争的影响,但尼日利亚工业部门对国内生产总值的贡献却持续下降。基于这种情况,本研究评估了 1988-2021 年关税对尼日利亚工业绩效的对称和非对称影响。研究采用线性和非线性 ARDL 技术进行分析。研究结果对称(线性 ARDL)结果显示,关税在短期和长期内对工业绩效都有显著的积极影响。非对称(非线性 ARDL)结果表明,关税与工业绩效之间存在长期不对称。总体而言,研究结果表明,使用关税保护尼日利亚国内产业能促进产业绩效。这意味着,尼日利亚工业部门对国内生产总值的贡献率下降并非关税政策所致。原创性/价值 尼日利亚在使用关税政策保护国内产业时应谨慎从事,以避免其贸易伙伴的报复行为扭转积极影响。
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来源期刊
CiteScore
3.20
自引率
7.70%
发文量
41
期刊介绍: African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies.
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