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Trade Openness And Unemployment Rate In Nigeria

Author

Listed:
  • Philip Nwosa

    (Department of Economics, Faculty of Social Sciences, Federal University Oye, Ekiti State, Nigeria)

  • Sunday Keji

    (Department of Economics, Faculty of Social Sciences, Federal University Oye, Ekiti State, Nigeria)

  • Samuel Adegboyo

    (Department of Economics, Faculty of Social Sciences, Federal University Oye, Ekiti State, Nigeria)

  • Oluwadamilola Fasina

    (Department of Economics, Faculty of Social Sciences, Federal University Oye, Ekiti State, Nigeria)

Abstract

This study examines the relationship between trade openness and unemployment rate in Nigeria from 1980 to 2018. The study utilized the auto-regressive distributed lag (ARDL) technique and the result of the study shows that trade openness had negative and significant impact on unemployment rate in Nigeria. The implication of this result is that trade openness provides employment opportunities, which reduces the unemployment rate in Nigeria. Thus, the study concludes that trade openness is a significant determinant of unemployment in Nigeria. The study recommends the need for conscious economic policies that would promote foreign private investment, capable of enhancing aggregate volume of investment in the country and contribute to employment generation in the Nigeria. Finally, government needs to explore new marketing areas for foreign investors which would also contribute to employment generation.

Suggested Citation

  • Philip Nwosa & Sunday Keji & Samuel Adegboyo & Oluwadamilola Fasina, 2020. "Trade Openness And Unemployment Rate In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(2), pages 52-62, September.
    • Handle: RePEc:ora:jrojbe:v:5:y:2020:i:2:p:52-62
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    References listed on IDEAS

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    1. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Trade and unemployment: What do the data say?," European Economic Review, Elsevier, vol. 55(6), pages 741-758, August.
    2. Seyed Ali Madanizadeh & Hanifa Pilvar, 2019. "The impact of trade openness on labour force participation rate," Applied Economics, Taylor & Francis Journals, vol. 51(24), pages 2654-2668, May.
    3. Nazia Anjum & Zahid Perviz, 2016. "Effect of Trade Openness on Unemployment in Case of Labour and Capital Abundant Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 44-58, March.
    4. Udo Kreickemeier, 2008. "Unemployment in Models of International Trade," Palgrave Macmillan Books, in: David Greenaway & Richard Upward & Peter Wright (ed.), Globalisation and Labour Market Adjustment, chapter 5, pages 73-96, Palgrave Macmillan.
    5. Mr. Reint Gropp & Mr. Liam P. Ebrill & Ms. Janet Gale Stotsky, 1999. "Revenue Implications of Trade Liberalization," IMF Occasional Papers 1999/007, International Monetary Fund.
    6. David Greenaway & Richard Upward & Peter Wright (ed.), 2008. "Globalisation and Labour Market Adjustment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58238-5, October.
    7. Taleb Awad-Warrad, 2018. "Trade Openness, Economic Growth and Unemployment Reduction in Arab Region," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 179-183.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Olufemi Samuel Adegboyo & Sunday Anderu Keji & Oluwadamilola Tosin Fasina, 2021. "The impact of government policies on Nigeria economic growth (case of fiscal, monetary and trade policies)," Future Business Journal, Springer, vol. 7(1), pages 1-14, December.

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    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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