THE IMPACT OF TRADE LIBERALIZATION ON EMPLOYMENT GROWTH IN NIGERIA
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Abstract
This study focused on the impact of trade liberalisation on the Nigerian employment growth. The major objective was to find out if trade openness has had positive or negative impact on the Nigerian employment rate. Secondary data sourced from Statistical Bulletin of the Central Bank of Nigeria (CBN) and the Nigerian Bureau of Statistics was employed. The econometric model was analysed using Microfit 4.1 for Windows. The results showed that trade liberalisation has had negative impact on the Nigerian employment growth. Nigeria became a dumping ground for cheap products from industrialised countries like China which adversely affected domestic manufacturing companies with many of them closing down. To avert this situation, strategies have been advanced for the production of local goods that are labour intensive both for domestic consumption/export and import capital goods like machineries to promote local production. Furthermore, the study recommends that different degree of liberalisation for various sectors be applied so as to discourage dumping, encourage local production and hence increase rate of employment
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