ABSTRACT
This study examine export market penetration of Nigeria product:
the Myths and Realities This study analyses the constraint and challenges of export market penetration and how it affect the economic development of Nigeria.
Regression analysis was used in cause of this study. Model was formulated to know the relationship between export trade, exchange rate, agriculture production, manufacturing output and bank loan to export .Secondary data was used to ascertain the correlation between the export and increase in economic growth.
The result show exchange, agriculture product and manufacturing index, play significant effect on the export penetration and their contribution to export trade is still very low. It therefore patients that government should be able to channel fund to promote local export trade in order to increases productivity of industrial sector so as to enhances international trade of Nigeria.
CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
The ultimate aim of the government of any country is to achieve a well-developed economy which can be depicted by the realization of macroeconomic objectives of equitable income distribution, prices stability and economic growth. Consequently, various policies and strategies can be adopted in the realization of these objectives. While some countries prefer inward looking import substitution model because it enables them to evolve their own styles of development and become master of their own fate, others believes in the adoption of export oriented strategy. Nigeria like many other developing countries had at one time or the other adopted the policy of import replacement under the philosophy of economic nationalism, have now switched to export promotion strategy because it was realized that this was more effective than import substitution in achieving a faster growth and structural upgrading of an economy. Export promotion strategy is commonly referred to by many scholars as governmental efforts to expand the volume of country's export through export incentives in form of public subsidies, tax rebates, special credit lines and other kinds of financial and non-financial-measures designed to promote a greater level of economicactivities in export industries so as to generate more foreign exchange and improve the current account of the balance of payments Todaro, (2003). It has been established in the literature that export trade is an engine of growth. It increases foreign exchange earnings, improves balance of payment position, creates employment and development of export oriented industries in the manufacturing sector and improves government revenue through taxes, levies and tariffs. These benefits will eventually transform into better living condition for the nationals of the exporting economy since foreign exchange derived would contribute to meeting their needs for some essential goods and services. However, before these benefits can be fully realized, the structure and direction of these exports must be carefully tailored such that the economy will not depend on only one sector for the supply of needed foreign exchange. In the years immediately after independence, the Nigerian economy was dependent on export of agricultural commodities for survival. However, as a result of the setting up of commodity board by the federal government to act as buying agent, this board went abo
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