ABSTRACT

Study examines the impact of ocean shipping trade on the economic development of Nigeria, covering the period from 1976 to 2015. Ocean shipping trade, in thousand tons served as an independent variable in all three set of assumptions, the gross domestic product, the value of Nigeria’s external reserves and payment of external debt were used as proxies for the level of economic development respectively. a simple regression analysis was applied using time series data. The findings of the study are that a significant and positive relationship between the shipment leaves the ocean exports and gross domestic product, foreign reserves and payment of external debt. Also the export shipping trade, is an important factor for economic development of Nigeria under each of the dependent variables. Based on these findings and conclusions, the study, among others, recommended that the overall institutional framework in the economy should be improved to take full benefits of trade expedition to the ocean in Nigeria. In addition, it is necessary to improve the lack of transparency and thus reduce the corruption that seems to be endemic in our country, and therefore to improve the earnings of export shipping trade.

TABLE OF CONTENT

CHAPTER ONE
1.0 Introduction = = = = = = == = 1
1.1 Background = = = = = = = = = 1
1.2 Statement of the problems = = = = = = 3
1.3 Objectives of the study = = = = = = 4
1.4 Research Questions = = = = = = = 5
1.5 Research Hypotheses = = = = = = 6
1.6 Significance of the study = = = = = = 6
1.7 Scope of the study = = = = = = = 7
1.8 Limitations of the study= = = = = = = 8

CHAPTER TWO LITERATURE REVIEW
2.1 Conceptual framework = = = = = = 9
2.2 Current status and Trends in World Shipping = = = 16
2.2.1 Overview of the World Shipping Industry = = = = 16
2.2.2 Trends in ship types and features = = = = 23
2.2.3 Trends in shipping Economics = = = = = 25
2.2.4 Overview of shipping markets the current trend = = 27
7

2.2.6 The Global Evolution of Containerisation = = = = 31
2.2.7 Ownership of Merchant Navy fleet= = = = = 38
2.2.8 Opportunities for African Maritime countries= = = 42
2.2.9 Importance of Maritime Trade in Nigeria’s economy = 46

CHAPTER THREE
3.0 Research Design and Methodology = = = = 51
3.1 Definition of Area and population of study = = = 51
3.2 Sources of Data = = = = = = = = 51
3.3 Procedure for Date Analysis = = = = = = 51
3.4 Operational Definition of variables / hypotheses testing 52
3.4.1 Hypothesis 1 = = = = = = = = 52
3.4.2 Hypothesis 2 = = = = = = = = 53
3.4.3 Hypothesis 3 = = = = = = = = 54
3.5 Test of significance = = = = = = = = 55
3.5.1 Test of model significance – ANOVA = = = = 55
3.5.2 Test of Model significance – Coefficient of determination
And the F-Test Approach = = = = = = 57
3.5.3 Test of the significance of the explanatory variables = 58
3.6 Assumptions of the linear regression model = = 59

CHAPTER FOUR
2.0 Data presentation, Analysis and interpretation = = = 62
4.1 Introduction = = = = = = = = = 62
4.2 Data Presentation = = = = = = = = 62
4.3 Data Analysis and hypotheses testing = = = = 65
4.3.1 Influence of shipment Export Trade on
Economic development = = = = = = 65
4.3.1.1 Test of Model significance – ANOVA method = = 67

4.3.1.2 Test of model significance – R2 method = = = 68
4.3.1.3 Test of the significance of the explanatory variable = 69
4.3.2 The Influence of shipment export trade on Nigeria
External reserve = = = = = = 70
4.3.2.1 Test of model significance –ANOVA method = = = 71
4.3.2.2 Test of model significance –R2ANOVA method = = 71
4.3.2.3 Test of the significance of the explanatory variable = 72

4.3.3 The Influence of shipment Export trade on

External Debt payment = = = = = = 73
4.3.3.1 Test of model significance – ANOVA method= = = 74
4.3.3.2 Test of model significance R2= = = = = 75
4.3.3.3 Test of the significance of the explanation variable = 75
4.4 Discussion of Results = = = = = = = 76
4.4.1 Hypothesis 1 = = = = = = = = 76
4.4.2 Hypothesis 2 = = = = = = = = 77
4.4.3 Hypothesis 3 = = = = = = = = 78

CHAPTER FIVE
5.0 Summary, Conclusion And Recommendations = = 79
5.1 Summary of findings = = = = = = = 79
5.2 Conclusion = = = = = = = = = 80
5.3 Recommendations = = = = = = = = 80
Bibliography= = = = = = = = 82
Appendices = = = = = = = = = 86

LIST OF TABLES

2.1 Distribution of the world fleet and DWT capacity of containers by country

Group – beginning 2007 40

2.2 Freight costs as percentage of import value

For various regions of the world 41
3.1 Hypothetical ANOVA table 56

4.1 Nigeria’s total ocean shipment export in thousands of tones, gross domestic product,

external reserve and external debt service
in millions of naira, 1976-2006 63
4.2 Hypothesis 1 result / output 66
4.3 Hypothesis 2 result / output 70
4.4 Hypothesis 3 result / output 73

LIST OF FIGURES

2.1 Composition of the world fleet 20
2.2 Shipping statistical table 21
2.3 Structure of shipping market 27
2.4 World merchandize trade (Exports F.O.B) 28
2.5 The global evolution of containerization 32
2.6 Growth in containerized shipping 33
2.7 Evolution of container vessel size 35
2.8 Distribution of world container traffic by region 38