Globalisation and employment in Nigeria’s manufacturing sector: Further evidence

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Odeleye, A.T.
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Journal of Economic Policy & Analysis
The debate about the impact of globalisation on employment in manufacturing sector has been ongoing for more than three decades. This paper examined the link between globalisation and employment in Nigeria’s manufacturing sector between 1980 and 2013. The theoretical foundation of the work is Heckscher-Ohlin–Samuelson (HOS), which discusses the effects of increased trade on the structure of industry and outputs of a country. HOS model was adapted with slight modification in conducting the investigation with Canonical Cointegration Regression (CRR) as estimation technique. The estimated model showed that manufacturing output had positive impact on employment in the sector. The results indicated that the average capacity utilisation and net export were negatively related to globalisation, implying that trade openness in Nigeria resulted in loss of jobs in the manufacturing sector. The study further revealed that custom and excise duties were reliable predictors of employment generation in Nigeria’s manufacturing sector. It was suggested that the government should adopt policies that will ameliorate the adverse effects of her openness to other countries and help her compete favourably in the global market.
Scholarly article
Odeleye, A.T. (2016a). Globalisation and employment in Nigeria’s manufacturing sector: Further evidence. Journal of Economic Policy & Analysis, Volume 1(2), 162-181.