Trade Imbalance and Entrepreneurial Activity: A Quantitative Panel Data Analysis

Abstract

Shale Oil export from the United States overseas today depicts the need for the United States to reduce its negative trade balance sheet and Nigeria’s wish to improve agricultural exports reflects its willingness to reduce its problem of oil dependence. Net Savings accruing from exporting capabilities have strong consequences for trade and specifically for balance of payment and country specific trade account. Its positive effect on net trade is often affected by strong domestic consumption of foreign imports leading to trade imbalances, and capital flight. This study investigates the relationship between savings, exports and net trade using quantitative techniques by considering panel data for Nigeria and the United States, It was found that net savings from trade and exports promote net trade positively, and that imports affects net trade negatively since business were probably not importing to promote further production activities causing trade deficit and negative imbalance.