1.1 Introduction
International Trade Facilitation is the simplification and harmonization of international trade procedures. In this regard trade procedure s are the activities practices and formalities involved in collecting, presenting, communicating, and processing data required for the movement of goods in international trade. International trade is the exchange of goods and services across international borders. This type of trade allows for a greater competition and more competitive pricing in the market. The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by demand and supply, by making goods and services obtainable which may not be otherwise available to local for local consumers. International trade makes it possible for goods that are produced but needed in a country to be made available. In addition, international trade contributes to a nation’s GDP, as it boosts the GDP of a nation (GoodHope, 2014).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Trade facilitation was conceived in the late '60s with the Fair-Trade Organization1, but its primary purpose stems from its beginning. Its understanding varies across time and contexts (Wilson & Otsuki, 2007), which somehow supports the use of different measures on previous studies and further interpretations. Trade facilitation concerns solving operational difficulties lacking a systemic view and an interdisciplinary approach where stakeholders' diversity from the bottom-up contributes to developing solutions (Grainger, 2011). Indeed, even with the new TFA implementation, the transport and services sectors lack the attention they deserve (Kunaka et al., 2013; Martin et al., 2010).
For the last three decades, policy reforms and trade agreements lowered the restrictions on cross-border flows of goods, contributing to an increased worldwide integration (Hoekman et al., 2010). Therefore, trade liberalization represents payoffs on market access improvements when the competition has become challenging (Hoekman et al., 2010). Moreover, the complexity of measuring the relationships between trade facilitation, trade flows, and capacity building, mostly when countries benefit depends on other reforms, add to these challenges (Wilson et al., 2005).
The first intentions were evidenced by the General Agreement on Tariffs and Trade (GATT hereafter) initiated in 1948 up to 1994. GATT was a multilateral agreement to trade 3 liberalization through diminishing tariffs and the like (Hill, 2011). However, the GATT trade rounds resulted in tariff reductions and concessions, boosting trade liberalization agendas after World War II (Grossman, 2016). Thus, the GATT turned into an international agreement establishing trade rules and an organization responsible for supporting the agreement.
The West African sub region has always been a commercial hub for international trade. History recorded some great era of international trade like the Trans-Saharan trade of the 10th and 11th centuries, and the Trans Atlantic trade of the 16th and 17th centuries. The evolution of this commercial activity into modern day businesses forms the bedrock of the economies of all West African States. As for Nigeria, the study becomes important because the economy is fast declining, and several measures are being considered as a remedy to the declining economy. International trade is generally known as an important aspect of economic development, but recent evolution in international trade shows a lot of hindrances and barriers that makes international trade difficult. Facilitating, international trade therefore becomes pivotal to the development of every economy.
Therefore, in Lagos State where the research was carried out, the activities that was conducted is to know the Port Management and International Trade Facilitation.
1.3 Statement of Problems
Investigation revealed that the basic problem this project intends to resolve is the unconscious and deliberate hindrance created by the people and government of West African States discouraging international trade significantly, and negatively affecting the economic growth of these states. This academic exercise has as its focus the current trend in trade facilitation in Nigerian, and how it affects the economy of the country, and sub region as a whole.
Consequently, it becomes important to ask why the decline in the economic growth and development of these West African States, especially Nigeria, with the traditionally, immense economic potential possessed by these States.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Port Management and International Trade Facilitation using Apapa Port as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To investigate the factors influencing port management and international trade facilitation in Apapa Port;
- To determine the relationship between port management and international trade facilitation;
- To examine the benefits of international trade facilitation with a view of enhancing the development of the Nigerian economy;
- To proffer possible solution towards eradicating the problems influencing international trade in the Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are there factors influencing port management and international trade facilitation in Apapa Port?
- What are the relationship between port management and international trade facilitation?
- What are the possible solutions towards eradicating the problems influencing international trade in the Nigeria?
- What are the benefits of international trade facilitation with a view of enhancing the development of the Nigerian economy?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There are no significant factors influencing port management and international trade facilitation in Apapa Port
- H1: There are significant factors influencing port management and international trade facilitation in Apapa Port
Hypothesis Two
- H0: There is no significant relationship between port management and international trade facilitation in Apapa Port
- H1: There is a significant relationship between port management and international trade facilitation in Apapa Port
1.7 Significance of Study
The significance of the study is to improve on the already made efforts on the study of trade facilitation particularly as it affects the Nigerian economy. It is also relevant to both public and private organizations that seek to dwell on the problem of international trade and its effects on the economy of developing countries.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The scope of the research is focused on the Port Management and International Trade Facilitation using Apapa Port as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
International Trade Facilitation: It has been defined as the simplification and harmonization of international trade procedures. In this regard trade procedure s are the activities practices and formalities involved in collecting, presenting, communicating, and processing data required for the movement of goods in international trade.
Economic Growth: It is positive change in the level of production of goods and services by a country over a certain period of time. Nominal growth is defined as economic growth including inflation, while real growth is nominal growth minus inflation. Economic growth is usually brought about by technological innovation and positive external forces.
