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EXPORTS AND ECONOMIC GROWTH IN NIGERIA: A CAUSALITY APPROACH BY KAREEM OLAYINKA IDOWU DEPARTMENT OF ECONOMICS UNIVERSITY OF IBADAN IBADAN, NIGERIA E- MAIL : olayinkaidowuus@ Nobility_research@ Telephone: 2348055677538 EXPORTS AND ECONOMIC GROWTH IN NIGERIA: A CAUSALITY APPROACH ABSTRACT We have tried to test the long run causality between Exports and Economic growth in Nigeria, using Co-integration and Granger Causality tests derived from Error-correction Mechanisms. Different techniques had been used by to test and estimate the unit root of the time series, co-integration as well as the Error-correction models of the variables. The research findings show that there is significant feedback causality between exports and economic growth in Nigeria and single co-integrating vector in the model. An important Policy implication is that the government should pursue both the inward and outward oriented industrial strategy. INTRODUCTION Nigerian economy is basically an open economy with international transactions constituting an important proportion of her aggregate economic activity. As a result of this, the economic prospects and development of the country, like many developing countries rest critically on international interdependence. The Nigerian economy is significantly characterized by a large foreign sector. However, over the years, the degree of openness of the economy has grown considerably. Prior to Nigeria political independence in 1960, agriculture was the mainstay of the economy, which supplied nearly all the food needs of the people and accounted for the largest part of the foreign exchange of the country. But, the advent of crude oil produc