Impact of Trade Liberalization on the Nigerian Manufacturing Sector

1
Anna, N. Tizhe
Anna, N. Tizhe
2
Anna
Anna
3
Umar
Umar
4
Idris Abubakar
Idris Abubakar
1 Edo State University, Uzairue, Edo state.

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The study examines the inter-relationship between trade liberalization and manufacturing performance in Nigeria. Time series data sourced from Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and Manufactures’ Association of Nigeria (MAN) for the period 1980 to 2010 were utilised. Short-run error correction model (ECM) and long-run (OLS) regression techniques was employed to derive the estimates. The findings from the study indicate that the adoption of trade liberalization strategies in Nigeria have negatively affected the country’s manufacturing sector, This shows that trade openness has brought about negative total factor productivity in Nigeria as manufacturers often respond to uncompetitive ease in trade restrictions by outright closures, reduction in production, and sometimes, relocation to neighboring countries. However, empirical evidence suggests trade liberalization increases Nigeria’s manufacturing output when total value of manufacturing output was used as measure of performance, although was not significant at the conventional test levels. Additionally, the incidence of the Dutch Disease syndrome was found to adversely affect Nigeria’s manufacturing sector performance measures employed in this study, and result aptly support the resource-curse hypothesis.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Anna, N. Tizhe. 2026. \u201cImpact of Trade Liberalization on the Nigerian Manufacturing Sector\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 22 (GJHSS Volume 22 Issue E2): .

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Trade liberal impact on manufacturing sector.
Issue Cover
GJHSS Volume 22 Issue E2
Pg. 71- 79
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: DDC Code: 621 LCC Code: TJ151
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v1.2

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March 30, 2022

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English

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The study examines the inter-relationship between trade liberalization and manufacturing performance in Nigeria. Time series data sourced from Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and Manufactures’ Association of Nigeria (MAN) for the period 1980 to 2010 were utilised. Short-run error correction model (ECM) and long-run (OLS) regression techniques was employed to derive the estimates. The findings from the study indicate that the adoption of trade liberalization strategies in Nigeria have negatively affected the country’s manufacturing sector, This shows that trade openness has brought about negative total factor productivity in Nigeria as manufacturers often respond to uncompetitive ease in trade restrictions by outright closures, reduction in production, and sometimes, relocation to neighboring countries. However, empirical evidence suggests trade liberalization increases Nigeria’s manufacturing output when total value of manufacturing output was used as measure of performance, although was not significant at the conventional test levels. Additionally, the incidence of the Dutch Disease syndrome was found to adversely affect Nigeria’s manufacturing sector performance measures employed in this study, and result aptly support the resource-curse hypothesis.

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Impact of Trade Liberalization on the Nigerian Manufacturing Sector

Anna
Anna
Umar
Umar
Idris Abubakar
Idris Abubakar

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