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Impact of Environmental Factors on the International Trade of Nigeria

Environmental factors’ influence on the exchange of goods and services across countries cannot be quantified. The study examined the effect of environmental factors on international trade by viewing of political, economic, social, and technological forces on global trade flow in Nigeria. The uniqueness of the study was the concentration on the trend of political factors such as tariff and government expenditure, economic factors such as exchange rate and inflation rate, social factors such as population rate and education level and technological elements such as electricity consumption and their impact on international trade in Nigerian economy from the period of 1997 to 2017. This quantitative method was adopted using secondary data and Regression Analysis, and Granger Causality Walds Test was used to explore the relationship among identifiable. At a significance level of 0.05, the F-statistics is 8.18 while the p-value of the F-statistics is 0.0002, which is less than 0.05. This implies that the combination of the independent variables significantly influences the balance of payment.