EFFECT OF NIGERIA-CHINA TRADE RELATIONS ON LOCAL PRODUCT IN NIGERIA, 2015-2020

Abstract

This work investigated the effect of Nigeria-China trade relations on local product in Nigeria. The study aims to determine the effect Chinese investment and high importation of Chinese products on Nigeria local product. Relevant conceptual theoretical and empirical literature was reviewed. The study was anchored on interdependence theory. Descriptive survey research design was adopted. The study was carried out in Nigeria from 2015-2020. The population of the study comprised of 420 manufacturing firms. The entire population was used as the sample size of 420. The instrument used for the study was questionnaire. Face and content validity was adopted while, test re-test and Cronbach Alpha method were carried out to achieve reliability of the instrument. Simple percentage analysis was employed to answer the research questions and Multiple Regression analysis was in testing the hypotheses. Results of analysis shows that Chinese investment had a positive significant effect on local product in Nigeria and high importation of Chinese products had a positive significant effect on local product in Nigeria. The study concludes that Nigeria-China trade relations had a positive significant effect on local product in Nigeria. It was recommended among other Nigerian government should encourage massive direct investment by Chinese companies in Nigeria which is capable of correcting the serious trade imbalance and provide more jobs for Nigerian than trade relations. China should be encouraged to set up production facilities in Nigeria which in turn will create more jobs for Nigerians, contribute to the development of GDP and the economy.