Evaluating The Impact of International Trade Flows on Industrial Sector Employment in Nigeria

ABSTRACT

 The study evaluates the impact of international trade flows on industrial sector employment in Nigeria. Specifically, the study evaluates the extent in which trade expansion has impacted on the industrial sector employment, the impact of net export on aggregate labour demand by industrial sector employment in Nigeria. The data for the study were mainly sourced from CBN statistical bulletins and World Bank economic indicator for Nigeria. The estimation was done within the framework of the vector error correction model. The study made some interesting findings based on the objectives. Among them are the facts that while trade expansion has negative and significant impact on industrial sector employment in Nigeria, international trade flows has no significant impact on industrial sector employment. Also, political uncertainty (violent and change in government tendency) has huge negative impact on industrial sector employment in Nigeria. Other variables found to have significant effect on industrial sector employment are gross fixed capital formation, foreign private investment, real interest rate and lag one of the long-run parameter. With these findings it is therefore imperative for Nigeria to make her international relationship more beneficial. This can be achieved by first broadening the horizons of production and reduce her volume of importation in order to correct the negative international trade flows- industrial employment relationship, and at the same time change the persistent trade imbalance in the economy.