Volume 10, Issue 1, October 2014, Pages 118–124
Kayode AKINYEMI1, Victor EBIEFIE2, Tinuola Adenike ADEKOJO3, and Ibrahim Adeniyi IBIYEMI4
1 Centre for Continuing Education, Federal University of Technology, Akure, PMB 704, Akure Ondo State, Nigeria
2 Department of Economics (Research Student), University of Lagos- Akoka Lagos, Nigeria
3 Department of Economics (Research Student), University of Ibadan, Oyo State, Nigeria
4 Department of Politics and International Relation, Lead City University Ibadan, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study investigates the relationship between trade liberalization and employment generation in Nigeria using secondary data on the quoted variables for the period 2003-2007. Panel regression model (Pooled Least Squares) was employed to examine the nexus between trade liberalization and employment generation. The study found that employment generation as result of trade liberalization the key determinant is tariff structure as a percentage increase will generate 73.4% of employment while other variables (wages, openness and FDI) effect on employment is not much. Also, the cumulative significant of the study shows that trade tariffs, wage rate, openness, and foreign direct investment have simultaneous significant effect on employment rate in the Nigeria's manufacturing, transport, agriculture and mining and quarrying sectors. Consequently, it was recommended that government, through legislative actions and mutual collaboration between the newly created Ministry of Trade and Investment and other trade-related agencies should continue to design policy measures directed toward the increase in tariff for the importable goods to facilitate more employment generation. Also, government should create the enabling environment for Foreign Direct Investment (FDI) to strive. Public-private partnerships toward the development of the considered real sectors should be encouraged in order to enhance employment generation.
Author Keywords: Trade liberalization, tariff, wages, openness, employment and Nigeria.
Kayode AKINYEMI1, Victor EBIEFIE2, Tinuola Adenike ADEKOJO3, and Ibrahim Adeniyi IBIYEMI4
1 Centre for Continuing Education, Federal University of Technology, Akure, PMB 704, Akure Ondo State, Nigeria
2 Department of Economics (Research Student), University of Lagos- Akoka Lagos, Nigeria
3 Department of Economics (Research Student), University of Ibadan, Oyo State, Nigeria
4 Department of Politics and International Relation, Lead City University Ibadan, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study investigates the relationship between trade liberalization and employment generation in Nigeria using secondary data on the quoted variables for the period 2003-2007. Panel regression model (Pooled Least Squares) was employed to examine the nexus between trade liberalization and employment generation. The study found that employment generation as result of trade liberalization the key determinant is tariff structure as a percentage increase will generate 73.4% of employment while other variables (wages, openness and FDI) effect on employment is not much. Also, the cumulative significant of the study shows that trade tariffs, wage rate, openness, and foreign direct investment have simultaneous significant effect on employment rate in the Nigeria's manufacturing, transport, agriculture and mining and quarrying sectors. Consequently, it was recommended that government, through legislative actions and mutual collaboration between the newly created Ministry of Trade and Investment and other trade-related agencies should continue to design policy measures directed toward the increase in tariff for the importable goods to facilitate more employment generation. Also, government should create the enabling environment for Foreign Direct Investment (FDI) to strive. Public-private partnerships toward the development of the considered real sectors should be encouraged in order to enhance employment generation.
Author Keywords: Trade liberalization, tariff, wages, openness, employment and Nigeria.
How to Cite this Article
Kayode AKINYEMI, Victor EBIEFIE, Tinuola Adenike ADEKOJO, and Ibrahim Adeniyi IBIYEMI, “Trade Liberalization and Employment Generation in Nigeria,” International Journal of Innovation and Scientific Research, vol. 10, no. 1, pp. 118–124, October 2014.
