Globalisation and Employment in Nigeria’s Manufacturing Sector: Further Evidence
Keywords:
Globalisation, employment, manufacturing, liberalisation
Abstract
The debate about the impact of globalisation on employment in the manufacturing sector has been ongoing for more than three decades. This paper examined the link between globalisation and employment in Nigeria’s manufacturing sector between 1980 and 2013. The theoretical foundation of the work is Heckscher Ohlin–Samuelson (HOS), which discusses the effects of increased trade on the structure of industry and outputs of a country. The HOS model was adapted, with a slight modification in the conduct of the investigation with Canonical Cointegration Regression (CRR) as estimation technique. The estimated model showed that manufacturing output had positive impact on employment in the sector. The results indicated that the average capacity utilisation and net export were negatively related to globalisation, implying that trade openness in Nigeria resulted in loss of jobs in the manufacturing sector. The study further revealed that customs and excise duties were reliable predictors of employment generation in Nigeria’s manufacturing sector. It was suggested that the government should adopt policies that will ameliorate the adverse effects of its openness to other countries and help it compete favourably in the global market.
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Weeraratne, B. (2004),’Textile and apparel industry in Sri Lanka: An empirical analysis in a globalisation setting’, A paper presented at the 3rd East-West Center, International Graduate Student Conference, Honolulu, Hawaii.
Ajakaiye, O., Jerome, D. N., and Alaba, O. A. (2016), Understanding the relationship between growth and employment in Nigeria, United Nations University, UNUWIDER, p. 1-30. www.brookings.edu/wp
Ajayi, S. I. (2003), ‘Globalisation and equity in sub–Saharan Africa: The myth and the reality’,@www.gdnet.org.
Akpan, S. B., Inimfon, V. P., Daniel, E. J. and Udoka, S. J. (2013), ‘Analysis of economic capacity utilisation in the Nigerian sugar industry (1970 - 2010)’, Journal of Development and Agricultural Economics, 5(6), p. 242-254.
Akpan, U. F. and Atan, J.A. (2015), ‘The effect of globalisation on selected sectors of the Nigerian economy: Agriculture, manufacturing and international trade’, British Journal of Economics, Management and Trade 8(2), p. 144-156.
Albaladejo, M. (2003), ‘Industrial Realities in Nigeria: from bad to worse’ QEH Working Paper Series – QEHWPS101.
Aluko, M. A. O., Akinola, G. O. and Fatokun, S. (2004), ‘Globalisation and manufacturing sector: A study ofselected textile firms in Nigeria’, Journal of Social Sciences, 9(2): 119-130.
Awolabi, E. N. (1998), ‘Globalisation, liberalisation and the risk of marginalisation of Nigeria’, CBN Research Department Publications, 5(1).
Bodkin, R. G. (1969),’Real wages and cyclical variations in employment: A re-examination of the evidence.’ Canadian J. Econ. 2 (August), p. 353-374.
Busari, D.T. (2004), ‘Foreign capital, globalisation and the challenges of industrialisation in Nigeria’, In: The challenges of industrialisation: A pathway to Nigeria becoming a highly industrialised country in the year 2015, Selected paper for NES conference. 521-551.
Carr, M. and Chen M.A. (2002) ‘Globalisation and the informal economy: How global trade and investment impact on the working poor,’ ILO Employment Sector Working Paper on the Informal Economy, No.2002/1.
Central Bank of Nigeria (2010), Statistical Bulletin, 21(3): Abuja.
Danladi, D. J., Akomolafe, K. J., Babalola, O. and Oladipupo, A. R. (2015), ‘Globalisation and the Nigerian manufacturing sector’, Journal of Law, Policy and Globalisation, 41, 202-211.
Geary, P.T and Kennan, J. (1982), ‘The employment-real wage relationship: An international study’, Journal of Political Economy, 90(4), p. 854-871
Gujarati, D.N. (2003), ‘Basic Econometrics’, 4th Ed, New York: McGraw-Hills Inc.
Heckscher, E. F. (1950), ‘The effect of foreign trade on the distribution of income. In: Readings in the theory of international trade, eds. Howard S. Ellis and Lloyd A. Metzler for the American Economic Association, 272–300. Homewood, IL: Irwin. Slightly abridged version translated from EkonomiskTidskrift (1919).
Held, D. (2000), ‘Regulating globalisation? The re-invention of politics’, International Sociology, 15(2), p. 394-408.
Hoskuldsson, A. (1992), ‘Chemometrics’, Intelligent Laboratory System, 14, p. 139–153. International Encyclopedia of the Social Sciences (2008), ‘Heckscher-Ohlin Samuelson Model.
Jean-Yves, H. and Verdier, L. (2013), ‘Does globalisation promote employment?’ In: Economic globalisation: Origins and consequences, OECD Publishing.
Keene, O.N. (1995). The log transformation is special. Statistics in Medicine 14(8): 811-819.
Kletzer, L. G. (2001), ‘Job loss from imports: Measuring the costs’, Washington, DC: Institute for International Economics.
Kuh, E. (1966), ‘Unemployment, production functions, and effective demand’, Journal of Political Economy, 74(3), p. 238-49.
Muhammad, M. (2011), ‘Globalisation crisis and national security: A reflection on Nigerian textile industry’, JORIND, 9(2), www.transcampus.org./journals.
Obayelu, A. (2007), ‘Effects of economic globalisation on employment trend and wages in developing countries: Lessons from Nigeria experiences’, Department of Agricultural Economics, University of Ibadan, Nigeria.
Ogunrinola, I. O. and Osabuohien, E. S. C. (2010), ‘Globalisation and employment generation in Nigeria’s manufacturing sector (1990-2006)’, European Journal of Social Sciences, 12(4), p.1-13.
Ogunyomi, O. O., Jenrola, O. A., and Daisi, O. R. (2013), ‘Globalisation and economic security in Nigeria: A reflection of the Nigerian manufacturing sector performance (1981 -2010)’, Journal of Economics and International Finance, 5(7), p. 293-306.
Ojo, M.O. and Obaseki, P.J. (1998), ‘Challenges of globalisation for microeconomic policy in Nigeria’, CBN Economic and Financial Review, 136(4).
Olayinka, K.I. (2006), ‘Globalisation and employment in developing economies: The Nigerian experience’, Proceeding, 2006 Annual Conference of Nigerian Economic Society, p.341-357.
Orbeta, A. C. (2002), ‘Globalisation and employment: The impact of trade on employment level and structure in the Phillippines, Discussion Paper Series No.2002 04, Philippines Institute for Development Studies.
Paterson, C.E. and Okafor, E.W. (2006), ‘Globalisation and employment generation: Evaluating the impact of trade on aggregate employment in Nigerian industrial sector’, Selected paper for the 2006 Annual Nigerian Economic Society: pp.309-340
Rama, M. (2003), ‘Globalisation and the labor market’, The World Bank Research Observer, 18(2), p. 159-186.
Saeger (1997), ‘Globalisation and de-industrialisation: Myth and reality in OECD’.
Spiezia, V. (2004), ‘Trade, foreign direct investment and employment: Some empirical evidences’, In: Lee, E. and Vivarelli (eds),’Understanding globalisation, employment and poverty reduction’, ILO International Policy Group, London: Palgrave Macmillan.
Tavera A. (2007), ‘Globalisation and its effects on manufacturing employment: The case of Peru, 1993-2000’, Indecopi Office of Economic Research, Pontificia Universidaddel Peru.
Thoburn, R. (2001), ‘Adjusting to trade liberalisation: the case of companies in the South African textile sector’, Oxford Textile Paper Document.
Turchin, P. and Nefedov, S. A. (2009), ‘Secular Cycles’, Princeton University Press: London.
Tverberg, G. (2013), ‘Twelve reasons why globalisation is a huge problem’, Gail Tverberg blog,http://ourfinite world.com
Verick, S. (2006), ‘The impact of globalisation on the informal sector in Africa’, Economic and Social Policy Division, United Nations Economic Commission for Africa (ECA) and Institute for the Study of Labor (IZA)
Weeraratne, B. (2004),’Textile and apparel industry in Sri Lanka: An empirical analysis in a globalisation setting’, A paper presented at the 3rd East-West Center, International Graduate Student Conference, Honolulu, Hawaii.
Published
2016-09-01
Section
Articles
