IDEAS home Printed from https://ideas.repec.org/a/ora/jrojbe/v5y2020i2p52-62.html

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
    as

    Download full text from publisher

    File URL: http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2020/10/OJBE_vol-52_52-62.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. 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.
    3. 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.
    4. David Greenaway & Richard Upward & Peter Wright (ed.), 2008. "Globalisation and Labour Market Adjustment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58238-5, April.
    5. 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.
    6. 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.
    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

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Zhen & Ngo, Thanh Quang & Saydaliev, Hayot Berk & He, Huiyuan & Ali, Sajid, 2022. "How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach," Economic Systems, Elsevier, vol. 46(4).
    2. Neha Bhargava & Qamar Alam & Vishal Sharma, 2026. "Analysing dynamics between unemployment and economic growth: an empirical evidence from India using Okun’s law," SN Business & Economics, Springer, vol. 6(1), pages 1-24, January.
    3. repec:ocp:rpecon:pp_02-22 is not listed on IDEAS
    4. Mina Baliamoune, 2022. "Trade and Youth Labor Market Outcomes: Empirical Evidence and Policy Implications," Research papers & Policy papers on Economic Trends and Policies 2201, Policy Center for the New South.
    5. repec:ocp:rpaper:pp-0222 is not listed on IDEAS
    6. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    7. Mr. Gilles Montagnat-Rentier & Mr. Gilles Parent, 2012. "Customs Administration Reform and Modernization in Francophone Sub-Saharan Africa, 1995–2010," IMF Working Papers 2012/259, International Monetary Fund.
    8. Povilas Lastauskas & Julius Stakėnas, 2020. "Labour market institutions in open economy: Sectoral reallocations, aggregate adjustments, and spillovers," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 814-845, August.
    9. Haiwen Zhou, 2018. "Impact of international trade on unemployment under oligopoly," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(4), pages 365-379, May.
    10. Mina Baliamoune-Lutz, 2023. "Does trade openness affect youth unemployment? New evidence from developing and emerging economies," Economics Bulletin, AccessEcon, vol. 43(3), pages 1502-1513.
    11. repec:bcp:journl:v:9:y:2025:i:10:p:4452-4569 is not listed on IDEAS
    12. Ding, Hong, 2012. "Is government’s help for unemployed people helpful for the society? An Empirical Study on Macro Data of Public Unemployment Spending in OECD Nations," MPRA Paper 43132, University Library of Munich, Germany.
    13. Sugata Marjit & Kausik Gupta, 2020. "Inward Looking Policies, Finite Change and Employment - The Capital Reallocation Effect," CESifo Working Paper Series 8730, CESifo.
    14. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 217-247, June.
    15. Stibora, Joachim & de Vaal, Albert, 2007. "Trade policy in a Ricardian model with a continuum of goods under nonhomothetic preferences," Journal of Development Economics, Elsevier, vol. 84(1), pages 350-377, September.
    16. Povilas Lastauskas & Eirini Tatsi, 2013. "Spatial Nexus in Crime and unemployment in Times of crisis: Evidence from Germany," Cambridge Working Papers in Economics 1359, Faculty of Economics, University of Cambridge.
    17. Uysal, Pinar & Yotov, Yoto V. & Zylkin, Thomas, 2015. "Firm heterogeneity and trade-induced layoffs: An empirical investigation," European Economic Review, Elsevier, vol. 75(C), pages 80-97.
    18. Justina A. V. Fischer, 2015. "Globalized Markets, Globalized Information, and Female Employment: Accounting for Regional Differences in 30 OECD Countries," AIEL Series in Labour Economics, in: Chiara Mussida & Francesco Pastore (ed.), Geographical Labor Market Imbalances, edition 127, chapter 0, pages 283-303, Springer.
    19. Mbekeni Lutho & Phiri Andrew, 2020. "South African Unemployment in the Post-Financial Crisis Era: What are the Determinants?," Folia Oeconomica Stetinensia, Sciendo, vol. 20(2), pages 230-248, December.
    20. Sèna Kimm Gnangnon, 2022. "Does Poverty Matter for Tax Revenue Performance in Developing Countries?," South Asian Journal of Macroeconomics and Public Finance, , vol. 11(1), pages 7-38, June.
    21. Sèna Kimm Gnangnon, 2022. "Financial development and tax revenue in developing countries: investigating the international trade channel," SN Business & Economics, Springer, vol. 2(1), pages 1-26, January.
    22. Thierry BAUDASSE, 2006. "Governance and Migration in a South-North Partnership : the Teaching of Economic Analysis," LEO Working Papers / DR LEO 691, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    23. Egger, Hartmut & Etzel, Daniel, 2012. "The impact of trade on employment, welfare, and income distribution in unionized general oligopolistic equilibrium," European Economic Review, Elsevier, vol. 56(6), pages 1119-1135.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:jrojbe:v:5:y:2020:i:2:p:52-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tomina SAVEANU The email address of this maintainer does not seem to be valid anymore. Please ask Tomina SAVEANU to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.