ASSESSMENT OF SHIPPING TRADE AND ITS EFFECT ON ECONOMIC GROWTH IN NIGERIA 1976-2015

ASSESSMENT OF SHIPPING TRADE AND ITS EFFECT ON ECONOMIC GROWTH IN NIGERIA 1976-2015

BACKGROUND

Shipping has long been considered as a powerful accelerator for socioeconomic growth. Adams Smith observed in 1776 that "a firm operating in a country town with no connections to the outside world will never attain high levels of efficiency since its tiny market will restrict the degree of specialization." Because shipping is one of the most cost-effective and efficient ways of long-distance transportation, it has been at the vanguard of world openness since antiquity, and hence a significant driver of the globalization process (Uche 2018).

According to Oscar (2015), globalization has been both a cause and a consequence of shipping, particularly container shipping. Container transportation may be considered the world's first genuinely global industry. In fact, container shipping may be the business that, more than any other, enables a truly global economy to function. It links nations, markets, enterprises, and individuals, enabling them to purchase and sell items on a previously unimaginable scale. Without container transportation, it is simply hard to conceive global trade and, ultimately, our life as consumers. Shipping has resulted in extraordinary expansion in global merchandise commerce, which has typically outpaced output growth. The total amount of commodities loaded at ports worldwide in 2006 was predicted to be 7.42 billion tonnes, up from 5.98 billion tonnes in 2000. The entire value of global exports climbed by 64% from US$6,454 billion in 2002 to US$40,393 billion in 2005.

Shipping has evolved as one of the most influential socioeconomic and political factors impacting the globe today, according to Gambo (2019). The shipping phenomenon is driving the globe toward greater and irreversible integration of economic, social, cultural, and political systems. Through maritime commerce, globalisation has "decoupled time and place," leading in the "death of distance." The once-vast world has shrunk to the size of "one small hamlet" as a result of globalisation.

Shipping has been a major cause and impact of globalisation. Globalization has had a tremendous influence on shipping, particularly container shipping. Indeed, shipping connects countries, markets, businesses, and people, enabling them to manufacture, purchase, and sell commodities on a previously unimaginable scale. As a result, it becomes vital, if not imperative, for governments to attempt to assess the impact of maritime commerce on their economies. As a result, this study evaluates the influence of maritime commerce on Nigerian economic growth.

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