TRADE LIBERALIZATION AND MARKET REFORMS IN CHINA AS MODEL FOR NIGERIAN ECONOMIC ADVANCEMENT

This study aims to examine the measures taken by China to transform its economy from one of the most cosseted to the most apparently open market among emerging economies. Hence, in the face of persistent economic crisis in a country like Nigeria, this study investigates how the nation can learn from the Chinese market reforms in order to achieve a higher level of economic development? How can trade liberalization be relevant in Nigerian economy where it is not just the market forces of demand and supply that determines the prices of things and the chains of economic activities, but also the unbridled self-interest and conspiracy of the elites? This study adopted a qualitative method of investigation through a broad appraisal of scholarly works on similar themes, with the help of textbooks and periodicals. The theoretical framework used in this study was the theory of invisible hand by Adam Smith (1776). Findings show that China’s transformation and advancement can be accredited to deregulation of the economy through rebating indirect taxes that reduced exportation profitability, reformation of foreign exchange allocation and the introduction of a duty draw back system. Based on the research findings, this study suggested that to achieve an advanced level of economic development in Nigeria, the government should jettison restrictive systems of controls such as tariffs, quotas and other array of licensing requirements. As an alternative, it is recommended to allow trade to be market determined, adopt non-discriminatory exchange rate policies and encourage the exportation of labour-intensive goods.

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