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Productivity growth in Nigerian manufacturing and its correlation to trade policy regimes/indexes (1962–1985)

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  • Louis N. Chete
  • Adeola F. Adenikinju

    (Nigerian Institute of Social & Economic Research (NISER) Ibadan, Nigeria)

Abstract

While the centrality of productivity enhancement to growth acceleration is one issue around which broad consensus exists in theory and empiricism, the role of trade policyin fostering productivity growth has received only modest attention. Recently, however, a considerable body of knowledge has accumulated on the importance of trade policy to the productivity process.To be sure, there are two divergent perspectives. One view posits that trade liberalization will stifle industrial productivity by opening up the economy to superior foreign products, compelling infant industries to close up. The other, and more pervasive,holds that outward-oriented trade policy will engender overall industrial efficiency in the economy by exposing local firms to competition and thereby improve the allocation of resources across sectors. This paper computes total factor productivity growth (TFPG) for the aggregate manufacturing sector of Nigeria and across the various subsectors and correlates these with specific indexes of trade policy. The results generally corroborate the mainstream view of a positive correspondence between trade liberalization and productivity growth

Suggested Citation

  • Louis N. Chete & Adeola F. Adenikinju, 2002. "Productivity growth in Nigerian manufacturing and its correlation to trade policy regimes/indexes (1962–1985)," Working Papers 127, African Economic Research Consortium, Research Department.
    • Handle: RePEc:aer:wpaper:127
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    Cited by:

    1. Oluremi Ogun, 2015. "A Fundamental-based Approach to Productivity Growth," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 383-392, September.
    2. Mohamed A.M. Sallam, 2021. "Determinants of Growth in Manufacturing Industries: Empirical Evidence from Egypt Using the ARDL Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 137-153.
    3. Akintoye Victor Adejumo & Oluwabunmi Opeyemi Adejumo, 2019. "Role of Productivity Growth in Economic Growth: Evidence from Nigeria (1970–2010)," Global Business Review, International Management Institute, vol. 20(6), pages 1324-1343, December.

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