AN ECONOMETRIC APPROACH TO THE IMPACT OF SHIPPING OPERATIONS ON NIGERIA’S ECONOMIC DEVELOPMENT

Abstract

The study took an econometric approach to study the impact of shipping activities on the economic development of Nigeria. Nigeria is blessed with an extensive body of waters which is yet to live up to its full potentials and one way to boost both economic growth and development is through shipping operations. The objectives of this research were to determine the relationship between shipping-related expenses and Nigeria's economic development, to discover the impact of the balance of international trade on economic development in Nigeria and to ascertain the effect of cargo throughput on Nigeria’s economic development. Using an econometric approach with tools such as the Ordinary least squares and Pearson’s correlation, the study found, among others that shipping expenses impact economic development negatively while cargo throughput has a positive impact on economic development. The study recommends that shipping expenses in Nigeria should be tailored in such a way that it would encourage more exports which would guarantee inflow of foreign exchange earnings.