EXPORT DIVERSIFICATION, IMPORT COMPETITION AND INDUSTRIAL SECTOR EMPLOYMENT IN NIGERIA
Abstract
The study employs the bound testing approach to cointegration and error correction analysis to investigate the effects of export diversification and import competition on industrial sector employment in Nigeria during the period from 1995 to 2021. Main findings of the study are that export diversification adversely affects industrial sector employment in the short-run with a one-year lag. The long effect of export diversification on industrial sector employment is positive and significant. Import competition is also found to adversely affect industrial sector employment in the short-run with a lag. The long run effect of import competition on industrial sector employment is positive and significant. Based on the evidence, the study recommends efforts by the government (through articulation, design and implementation of policies and programmes) to diversify the nation’s exports baskets, and imports control as some measures to enhance employment generation in the nation’s industrial sector.
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