Economic Growth and Sustainable Development

This study explores the factors contributing to economic growth and sustainable development. It compares the GDP per capita of Nigeria and China and analyzes the role of capital, population, quality of labor, technology, and governance in economic growth. The study highlights the importance of investing in education and health, technological innovation, and good governance for achieving higher GDP per capita.

Running Head: ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT1
Economic Growth and Sustainable Development
Name
Affiliation
Date

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 2
Introduction
The aim of this paper is to collect, compare and contrast economic data of two countries
(one rich and one poor). In this case, the selected countries include; Nigeria (poor country) and
China (rich country). Nigeria's Gross Domestic Product grew by 1.9 percent in 2018 as
compared to the previous years. Nigeria's GDP growth in 2018 was 11th to 10th as more than
that of 2017. In addition, the country's Gross Domestic Product figure was US$ 397,270 million
in 2018 (Onuba and Ifeanyi, 2015). This implies that the country's Gross Domestic Product rose
by US$20, 909 million in 2018 compared to 2017. Nigeria's Gross Domestic Product per capita
was US$ 2,081 in 2018 higher than in 2017 ($109). The high growth of the country's growth
interesting which requires reviewing other previous years like 2008 where the country's Gross
Domestic Product was US$ 2,234. On the other hand, China's GDP in 2017 was worth US$
12237.70 billion. The Gross Domestic Product of the country represents at least 19.7% of the
global economy. The average Gross Domestic Product of China was US$1970.49 billion since
1960. In 2017, the country's GDP increased up to US$ 122237.70 billion. As compared to the
past years, China's Gross Domestic Product grew by 1.4 percent (Onuba and Ifeanyi, 2015).
Figure one: Comparison of Nigeria's and China's GDP per capita (US Dollars)

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 3
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
2000
4000
6000
8000
10000
12000
GDP per capita
Nigeria China
Year
GDP per capita (US Dollars)
The line graph above compares the Gross Domestic Product per capita of Nigeria and
China from 2008 to 2018. The graph indicates that China’s GDP was higher as compared to
Nigeria. The graph indicates the variation in the countries’ GDP per capita in Us dollars.
2. Theory Format:
This section explains the various factors that may contribute to the economic growth and
difference in the Gross Domestic Product per Capita between China and Nigeria. The factors
include the following;
Capital, this factor can best be explained with the help of the Solow model which
indicates that economic growth results from increased capital that improves the factors of
production. In addition, the theory explains that the economic growth of a nation resulted from
investment and saving that lead to more accumulation of capital by the country. In addition,
increased capital is considered as a major factor for improving production by ensuring efficiency.
The model aims at illustrating the role played by Capital towards the economic growth of the

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 4
country and leading to a difference in GDP per capita between China and Nigeria (Huang, &
Xie, 2013). The model assumes that "output is produced using a production function in which
output depends upon capital and labor inputs as well as a technological efficiency parameter."
However Slow Model also assumes that "there are diminishing marginal returns to capital
accumulation." In other words, the model indicates that increased capital provides a relatively
smaller increase in output (Irwin, 2016). Also, the model indicates that if any firm gets extra
capital, it will be in the position to obtain the increased output. However, the model assumes that
if the firm increases its capital minus increasing the number of workers, the increased output may
not be obtained. The model does not aim at modeling the decision of consumption-saving but it
assumes that people save a given normal fraction of their salary or income. Further, the model
illustrates that if savings are equal to the investment, the output is constant with investment.
Also, the model illustrates that MP of additional capital investment may decline in the long run
leading to a decline in the country's Gross Domestic Product. The model illustrates that the
economic growth of a country is obtained by adding more labor inputs and capital. Therefore,
this implies that if a given country invests in more capital as compared to the other, it will be in
the position to obtain a high GDP per capita as compared to another country. Also, the theory
implies that a country which invests in more capital attains economic growth as compared to
countries which are not in the position to make capital investments (Yao et al, 2013).

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 5
Figure two: Solow model of Output and capital
Source: http://www.karlwhelan.com/Macro2/Notes9.pdf
Explanation: the figure above indicates that investment an increase in the capital leads to
a shift in the level of investment. In addition, the figure indicates capital is associated with more
investment leading to the shift in the investment curve upwards from sy (green) line to Y (red)
line. From the current capital level k1, capital investment exceeds depreciation. This implies that
the country's capital stock begins to increase. This proceeds until capital marks to new
equilibrium rates of k2.
Population, these factors can be explained or analyzed with the help of the Malthusian
Theory. The theory is important for exponential growth relative to the idea of on which a given
function grows. The model is always used in the population ecology theory as the major
principle of "population dynamics." The theory was published by 'Thomas Robert Malthus' who
thought that by using positive checks and preventive checks, the population of a given country

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 6
would be in the position to control the balance of food supply according to the level of
population. Thomas Malthus indicated that population grows in "geometric progression." The
model also indicates that before the emergence of the industrial revolution, people's standards of
living differed over a given period of time across various countries. Also, the theory indicates
that after the industrial revolution, the per capita income of different countries grew among rich
countries. This implies that there is a positive correlation between population and investment
across the countries. Therefore, countries with a low population face a problem of reduced labor
force hence hindering the growth of Gross Domestic Product per capita of such countries. This
implies that the countries have a negative relation between the output of the workers and the
population growth across poor countries. The theory also indicates that an advance in technology
will increase a nation's population without changes in the standards of living of the people. As a
result of increased population growth, the country's GDP per capita grows. The theory also
indicates that if the population grows, consumption increases leading to economic development
(Kerr et al, 2016).
Figure three: Malthusian model

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 7
Source: http://www.pitt.edu/~sewonhur/teaching/1720/lecture7.pdf
Explanation: The figure above indicates that in the case of Z increases, it will lead to an
upwards shift of the production function per-worker. In addition, the figure indicates that
population increases at the point where the county's per capita of consumption returns to the
original level in the long run.
Quality of labor (education and health), a country's economic growth is basically
determined by the increase in the productivity of workers which indicates how best activities are
performed. In other words, the quality of labor means how efficient the nation is with its workes
and time. Notably, the productivity of labor is an employee's value that he or she creates
according to the input of an individual. Also, the quality of labor aims at estimating how
productive an individual is towards the performance of a given workload. For the purpose of this
paper, we shall make an analysis of two major factors on how they contribute towards the
economic growth and difference in GDP per capita between countries. In this case, the quality of
education provided to the citizens is a major factor that development. In most cases, it is always

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 8
very had for a country to achieve economic growth without investing in human capital such as
education. Education is a vital factor that enriches the understanding of people and the world.
Also, education improves the lives of people leading to increased social benefits to society and
individuals (Mason, 2014). In addition, education plays an important role in raising the creativity
and productivity of people and promote technological and entrepreneurship advances hence
leading to economic growth. In addition, good quality education plays a crucial role in ensuring
social progress and economic security. By improving the social security of a nation, people will
be in the position to perform their activities effectively leading to increased production which
results in economic growth. Also, good quality education helps in improving income distribution
among the people in a given nation. In most cases, poor countries (Nigeria) fail to provide good
quality education leading to reduced GDP per capita for such countries. On the other hand, rich
countries such as China always aim at providing a good quality education because they consider
it to be a major contributor to a country's economic growth. Also, the quality of health provided
to the people in a country determines economic growth. In this case, if a country fails to provide
good quality health to its citizens, the quality of labor will also be poor leading to low production
hence reduced economic growth. However if a country provides good quality health to its
citizens, productivity will high hence increased economic growth. Therefore, the differences in
the GDP per capita between China and Nigeria is as a result of different quality of education and
health provided to the citizens (Mason, 2014).
Technology, this is a big factor to economic growth and GDP per capita within different
countries. According to the Engogenous growth theory, a country's rate of economic growth is
strongly determined or fostered by technological innovations and human capital. The theory
illustrates that if workers have greater education, training, and knowledge, they will be in the

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 9
position to increase the rate of technological innovation. Further, the theory illustrates that
governments should actively rcourage different firms to consider technological innovation so as
to improve production. By improving technological innovation, firms will be in the position to
produce more goods with reduced costs of production such as labor costs. This will help in
increasing the income of such firms hence contributing to the economic growth of a country. By
increasing productivity, the country will be in the position to attain high Gross Domestic Product
per capita as compared to nations which don't emphasis technological advancement. In addition,
if a government fails to encourage technological innovation, production will reduce leading to
declining in the economic growth of such a country. In this case, the differences in GDP per
capita between Nigeria and China may happen if Nigeria fails to implement technological
innovations. Therefore, if the government of China emphasizes technological innovation
production will raise hence increasing the country's GDP per capita (Piketty, 2014).
Governance, the quality of a country's governance plays a vital task in ensuring economic
growth and alleviating poverty for poor or developing nations. International Monetary Fund
illustrates that "promoting good governance in all its aspects, including ensuring the rule of law
improving the efficiency and accountability of the public sector, and tackling corruption can
make economies prospers." In addition, good governance helps in achieving increased
investment which results in economic growth. This is through the creation of sound business
atmosphere. Also, good governance would help in minimizing the existence of bad policies.
According to the United Nations Development Programme, governance is referred to as "the
exercise of economic, political, and administrative authority to manage a country's affairs at all
levels. It comprises mechanisms, processes, and institutions, through which citizens and groups
articulate their interests, exercise their legal rights, meet their obligations, and mediate their

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 10
differences." For any country to attain economic growth, it should be corruption free. For any
weak governance, it creates distortions in the implemented policies hence the creation of a
corrupt environment. This is always common in case, the country lacks clear demarcations
between private and public spheres a lack of proper regulations. In case weak governance
persists, the capacity of the state to conduct its functions that is to say market regulations,
provision of public goods will not be considered to be important. In most cases, corruption
affects developing and less developed nations. In addition, corruption distorts the country's
economic systems and causes "social; disintegration" leading to injustice and discrimination. In
addition, corruption is regarded as a major factor that leads to the failure of an institution more
especially that is in charge of enforcement, investigation, and prosecution. Therefore, countries
which have failed to mitigate corruption are at a high risk of failing to attain economic growth as
compared to countries which have designed measures of eliminating corruption. For developed
countries such as (China), the rate of corruption is always low leading to high GDP per capita as
compared to the poor nations such as Nigeria. This implies that less developed countries such as
Nigeria have a weak government which cannot be in the position to mitigate corruption resulting
into reduced GDP per capita of such countries (Prettner, & Prskawetz, 2010).
Openness/ New economic geography, in most cases, countries tend to ignore space,
transport and distance costs. Most of the theories leave out these factors. However, the distance
between nations is vital in making an analysis of a country's international trade. According to the
"Theory of Interregional and International Trade" by Berlin Ohlim, he analyzed that the costs of
transportation affect specialization and trade. In addition, International thoery can also be well
understood with the help of "general location theory." In this case, new economic geography is
concerned about various questions such as, "which factors have influenced and continue to

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 11
influence the geographical distribution of economic activity?" In addition, it addresses why a
given nation concentrated in a given region. In regards to geography, some regions enjoy the
advantage of other nations such as superior countries enjoying transportation facilities and
natural sources of less developed countries. This explains why some Nations particularly focus
on certain economic activities (Onuba, & Ifeanyi, 2015). In addition, "the new economic
geography" is regarded as a theory of "the emergence of large agglomerations" which depends
on increased transportation costs and concentrates on linkages between suppliers and firms as
well as consumers and firms. The new economic geography also implies that most of the
country's economic activities or services are geographically concentrated. Yet not all the people
live in major cities neither do most governments concentrate their production of goods in a given
location. In most cases, developing countries tend to concentrate their markets in various areas
which enables people to easily get access to goods, unlike less developed countries which focus
on cities only leading to reduced economic growth. In addition, the concentration of industries in
various places in the country gives a chance to the people in the region to get employment
opportunities hence fostering production and improving their standards of living. Also, a local
concentration of different economic activities helps in creating more external economies.
Therefore, poor countries like Nigeria tend to ignore establishing industries in local areas leading
to reduced economic growth which is not the case with developed countries like China. In this
case, the differences in GDP per capita between China and Nigeria may arise as a result of the
geographical concentration of industries such as local areas and urban areas. This implies that a
difference in the concentration of industries results in economic differences between countries
(Prettner, & Prskawetz, 2010).
3. Applications:

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 12
Capital
According to the proxy variables of the World Bank, Nigeria has a continuous growth of
cities Capital in 2028 of around US$ 6,303.63 million. This indicates that the country
experienced a 59.4% increase in its capital as compared to the previous years. Studies indicate
that an increase in the inflow of capital in Nigeria was as a result of Portfolio investment which
contributed US$ 3,477.53 million the previous year. In 2018, the Foreign Direct Investment of
Nigeria dropped by 34.83 percent as compared to the previous statistics of 2017. This indicates
that the country faced a decline in its economic growth in 2018 because the level of investment
was very low. As a result of limited capital, Nigeria was not in the position to attain increased
Gross Domestic Product per capita in 2018 as compared to other Countries. On the other hand,
China's capital investment was US$ 6.325 Trillion in 2018. This im0lies that China had a high
Gross Domestic Product per capita in 2018 as compared to Nigeria. As a result of increased
capital, China was in the position to make increased investments and saving leading to economic
growth. The increased capital of China fostered production hence increased output. Also, the
increased capital of China indicated that more laborers were hired industries to perform various
industrial activities hence increasing production. This implies that an increase in the capital flow
of China was as a result of increased investment and saving. Therefore, Nigeria has a small
Gross Domestic Product per capita as compared to China because of its low level of investment
that leads to reduced capital (Prettner, & Prskawetz, 2010).
Figure four: Market capitalization to GDP

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 13
1996-01-01
1997-01-01
1998-01-01
1999-01-01
2000-01-01
2001-01-01
2002-01-01
2003-01-01
2004-01-01
2005-01-01
2006-01-01
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2008-01-01
2009-01-01
2010-01-01
2011-01-01
2012-01-01
2013-01-01
2014-01-01
2015-01-01
2016-01-01
0.00000
10.00000
20.00000
30.00000
40.00000
50.00000
60.00000
70.00000
80.00000
90.00000
Capitalization to GDP for Nigeria and China
China Nigeria
Years
Percentage
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
Explanation: The figure above indicates the difference between the market capitalization
of Nigeria and China. It indicates that China spends much of its capital in investment as
compared to Nigeria leading to economic growth.
Technology
Considering the proxy variables of the World Bank, China invested 2.108% of its Gross
Domestic Product on technology development and research in 2016. China’s intention of
investing 2.108% GDP was to ensure effective innovation in its industrial sector. In return, China
expected to atta8ined an increased Gross Domestic Product per capita. It is believed that
technology innovations play a bigger role in the improvement of production. By improving
technology, China was in the position to increase its production hence economic growth. Unlike
Nigeria which invested only 1.425% in technology development and research, the rate of its
economic growth is quite slow as compared to China. This implies that the Gross Domestic
Product per capita of Nigeria will be low as compared to that of China. As a poor country,

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 14
Nigeria can not invest much of its capital into technology development alone because it has to
cater for other services with limited revenue. In addition, most of the industries in Niogeria fail
to invest in technology development as research as a result of limited competition leading to
reduced production. Therefore, China has a higher GDP per capita as compared to Nigeria
because of its investment in technology (Kerr et al, 2016).
Figure five: Technology development and expenditure (% of GDP)
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
Explanation: The line graph above indicates china’s and Nigeria's expenditure on
technology development and research. The figure indicates that Nigeria’s expenditure is higher
as compared to Nigeria for all the previous years.
Population
According to the proxy variables of the World Bank, China had a total population of
1,386 billion people in 2016. This was a bigger population as compared to Nigeria which only
1996-01-01
1997-01-01
1998-01-01
1999-01-01
2000-01-01
2001-01-01
2002-01-01
2003-01-01
2004-01-01
2005-01-01
2006-01-01
2007-01-01
2008-01-01
2009-01-01
2010-01-01
2011-01-01
2012-01-01
2013-01-01
2014-01-01
2015-01-01
2016-01-01
0
0.5
1
1.5
2
2.5
China Nigeria
Years
% of GDP

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 15
had 185,989,640 million people in 2016. High population growth of China helps in providing
labor to the industries in the area. In addition, the increased population provides a market for the
manufactured goods leading to industrial growth hence economic growth. Compared to China,
Nigeria has a lower population which can not be in the position to provide a market for the home
produced goods. In addition, Nigeria lacks labor force to work in its industries leading to reduced
production. In addition, a low population discourages specialization of labor leading to the
limitedproduction of some goods hence reduced the economic growth of a nation. This implies
that Nigeria has a low Gross Domestic Product per capita as compared to China because of the
limited production as a result of the low population. As a result of the increased population of
China, the country was able to obtain US$ 16.660 per capita in 2018 and Nigeria obtained only
US$ 5,929. Therefore, the population differences between China and Nigeria creates up to a
difference in the GDP per capita of the two countries (Kerr et al, 2016).
Figure six: Population of China and Nigeria
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
1/1/1996
1/1/1997
1/1/1998
1/1/1999
1/1/2000
1/1/2001
1/1/2002
1/1/2003
1/1/2004
1/1/2005
1/1/2006
1/1/2007
1/1/2008
1/1/2009
1/1/2010
1/1/2011
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
Population
China Nigeria
1996-2016
Total population

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 16
Explanation: The line graph above is the total population graph indicating China's and
Nigeria's percentage population for the last ten years. The graph indicates that China has a higher
population as compared to Nigeria.
Openness / New economic geography
Reflecting on the proxy variables obtained from the World Bank database, they indicate
that Nigeria earns highly from International Trade. The results indicate that the country obtained
at least 32.933 percent of its Gross Domestic product from international trade. This indicates that
China is in the position to export its products to various countries across the world. Also, it
indicates that China enjoys the advantage of other Nations by carrying providing them with its
products. As a result of increased production of China’s industries, the countries export rate has
continued to grow to lead to the economic growth of the nation. The high percentage of the
country's Gross Domestic product obtained from international Trade indicate that the country
mostly depends on international trade for its revenue. As a rich country, China is in the position
to take advantage of poor countries by using their natural resources for industrial production.
This gives the country a chance to perform best in international trade leading to increased
revenue. On the other hand, Nigeria has experienced a decline in its international trade gains. For
example, in 1996, the country obtained 44.3 percent of its GDP from international trade but by
2016, it reduced to 17.011. This indicates that Nigeria has experienced a decline in its economic
growth as a result of reduced international trade. The differences in gains from international
trade between two countries indicate that there is a bigger gap between Nigeria and China in
terms of their openness or new economic geography. This also implies that one country is
superior over the other leading to a difference in Gross Domestic Product per capita. As a result

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 17
of increased openness of China as evidenced by its gains from international trade, the country
obtains a higher GDP per capita as compared to Nigeria (Kerr et al, 2016).
Figure seven: International trade (% GDP)
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
Quality of labor
In order to obtain increased production of industries, the quality of labor plays an
important role. According to the proxy variables of the World Bank, Nigeria spends less of its
GDP on education expenditure. Results indicate that Nigeria invested 2.647 percent of its Gross
Domestic Product on education. This indicates that the country invests less of its GDP in training
laborimplying that Nigeria has a reduced production leading to a decline in its economic growth.
Also, the country invests less in the quality of health of its labor leading to low production. In
most cases, if labor is not effective, production tends to be low. The proxy variables of World
Bank indicate that Nigeria spent only 3.647% of its Gross Domestic Product on health. This
implies that the country spends less on health services which would not be the case leading to
1996-01-01
1996-10-01
1997-07-01
1998-04-01
1999-01-01
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2008-10-01
2009-07-01
2010-04-01
2011-01-01
2011-10-01
2012-07-01
2013-04-01
2014-01-01
2014-10-01
2015-07-01
0
10
20
30
40
50
60
70
International trade (GDP)
Nigeria China
years 1996-2016
% GDP

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 18
low production. On the other hand, China spends highly on education as compared to China. For
example, China spent 5.982 percent of its Gross Domestic Product on education in 2-016. As a
result of increased expenditure on education, the country is in the position to ensure increased
production resulting in economic growth. Also, China spends highly on ensuring its health sector
leading to the good health of the workers. For production to be high, the workers need to be
healthy. This implies that a high expenditure on health by China results in increased production
hence economic growth. Therefore, China earns a high GDP per capita as compared to Nigeria
because it spends a bigger percentage of its Gross Domestic Product on education and health
sector. Higher expenditure on health and education helps in ensuring high labor productivity
hence economic growth (Mason, 2014).
Figure eight: education expenditure (% GDP)
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
1996-01-01
1996-10-01
1997-07-01
1998-04-01
1999-01-01
1999-10-01
2000-07-01
2001-04-01
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2009-07-01
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2011-10-01
2012-07-01
2013-04-01
2014-01-01
2014-10-01
2015-07-01
0
1
2
3
4
5
6
7
education expenditure (% GDP)
China Nigeria
years 1996-2016
% GDP

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 19
Figure nine: education expenditure (% GDP)
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
Governance.
The proxy variables of World Bank indicate that China has economic freedom of 58.4
percent making it be the 100 free economies regarding the index of 2019. The overall score of
China has increased as compared to the past years with a bigger score on labor freedom, reduced
corruption rates, and judicial effectiveness. Among the forty-three countries found in Asia-
pacific area, China is ranked as the twentieth in economic freedom. As a result of economic
tension between China and the USA, there has emerged businessuncertainties. However, the
government of China has adopted unrestrictive economic policies this year in order to reduce all
risks that may disrupt itseconomic growth. In this case, the combined import and export value of
China is 37.8% of Gross Domestic Product where 3.5% isapplied to the tariff. This implies that
1996-01-01
1996-01-02
1996-01-03
1996-01-04
1996-01-05
1996-01-06
1996-01-07
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1996-01-20
1996-01-21
0
1
2
3
4
5
6
Health expenditure (% GDP)
China Nigeria
years 1996-2016
% GDP

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 20
the country's restrictive measures on foreign investments are low leading to increased GDP per
capita of China. On the other hand, Nigeria has economic freedom of 57.3% making it to the
111th free economy as regards to the index of 2019. The countries overall scores have reduced
by 1.2% as compared to the past years with a steep reduction in fiscal health. In addition, the
country's lower scores have been on business freedom, labor freedom, and government integrity
and judicialeffectiveness. Among the forty-seven countries in the Sub-Sahara region in Africa,
Nigerian is ranked as the fourteenth free economy. Also, the government of Nigeria has always
pledged to widen its private sector by ensuring a freemarket economy and liberation of its oil
sector, the countries implementation of the policies has relatively been slow. In addition, it is
noted that the country imposes a tariff of 11.3% on its imports and exports. This createsbarriers
to investment and trade in the country resulting in reduced economic growth. As compared to
China with anaveragetariff of 3.5% on its imports and exports, Nigeria charges a high rate of
11.3% leading to reduced investment and trade hence earning, low Gross Domestic Product per
capita (Mason, 2014).
Figure ten:
Figure ten:

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 21
Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NG
Recommendations
Tackling corruption and reducing restrictions on trade, in this case, a poor country like
Nigeria can attain economic growth by reducing its trade restrictions such as tariffs on import
and exports. This would encourage more people to participate in trade hence increased Gross
Domestic Product. In addition, poor countries like Nigeria are still backward as a result of
corruption and over-restrictive regulations. IN order to attract more international and domestic
investors, Nigeria can be in the position to create a conducive atmosphere for business. In other
words, Nigeria can improve its economic growth by ensuring that it is corrupt free and reducing
its trade restrictions (Mason, 2014).
Increased investment in the labor, if Nigeria invests highly in education and health sector,
its quality of labor will be good. In this case, Nigeria should make sure that it focuses on
1998-01-01
1998-10-01
1999-07-01
2000-04-01
2001-01-01
2001-10-01
2002-07-01
2003-04-01
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2004-10-01
2005-07-01
2006-04-01
2007-01-01
2007-10-01
2008-07-01
2009-04-01
2010-01-01
2010-10-01
2011-07-01
2012-04-01
2013-01-01
2013-10-01
2014-07-01
2015-04-01
2016-01-01
2016-10-01
2017-07-01
0
10
20
30
40
50
60
70
Trade restriction
China Nigeria
years 1998-2018
%

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 22
primary, secondary and Tertiary education with an intention of increased the rate of skilled labor
in the nation. If the quality of labor is good, production can be effective with limited employees
but if the quality of labor is bad, more employees will be required to perform a given workload.
In order to attain economic growth, Nigeria is required to focus on investing highly in education
and health sector (Onuba, & Ifeanyi, 2015).
References

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 23
Huang, T., Xie, Z. (2013). Population and economic growth: A simultaneous equation
perspective. Applied Economics, 45, 3820-3826.
Irwin, N. (2016). The upshot: We’re in a low-growth world. How did we get here? New York
Times. Retrieved from https://www.nytimes.com/2016/08/07/upshot/were-in-a-low-
growth-world-how-did-we-get-here.html
Kerr, S. P., Kerr, W., Ozden, C., Parsons, C. (2016). Global talent flows. Journal of Economic
Perspectives, Vol:30 P:83-106
Mason, P. L. (2014). Immigration and African American wages and employment: Critically
appraising the empirical evidence. The Review of Black Political Economy,
Vol:41, P:271-297.
Onuba, and Ifeanyi (2015). "Only 4.67 million Nigerians are unemployed —NBS". The Punch
Newspaper.
Piketty, T. (2014). Capital in the twenty-first century. Cambridge, MA: Belknap Press of
Harvard University Press.
Prettner, K., Prskawetz, A. (2010). Demographic change in models of endogenous economic
growth: A survey. Central European Journal of Operations Research, 18, 593-608.
Yao, W., Kinugasa, T., Hamori, S. (2013). An empirical analysis of the relationship between
economic development and population growth in China. Applied Economics, P:4651-
4661.

ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT 24