Effects of trade liberalization on aggregate and agricultural sector employment in Nigeria
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Date
2022
Authors
Adeogun, Adedapo S.
University of Lethbridge. Dhillon School of Business
Journal Title
Journal ISSN
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Publisher
Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business
Abstract
One deleterious problem plaguing most developing countries like Nigeria is unemployment and free trade has been identified as a panacea by many studies. However, proponents of protectionism argue that the agricultural sector should be shielded from international trade competition. Since the agricultural sector is a major employment driver in Nigeria, the objective of this study is to investigate the impact of trade liberalization on aggregate and agricultural sector employment in Nigeria. Using multiple linear regression (MLR) with trade and employment data from 1991 – 2020, the study found that although trade openness increased employment in the agricultural sector, it had no significant effect on total unemployment. Also, the agricultural share of the GDP does not significantly affect aggregate employment. Furthermore, foreign direct investments promote aggregate employment while having a negative impact on the agricultural sector employment. The study recommends that trade openness be promoted to further improve the agricultural sector.
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Keywords
Unemployment , Trade liberalization , Agriculture , Protectionism , Nigeria