Trade Liberalisation and Selected Manufacturing Sectoral Groups in Nigeria

Abstract

This paper investigates the impact of Trade Liberalization on some selected manufacturing sectoral groups: Food, Beverages & Tobacco (FBT); Cement (CEM) and Basic Metal, Iron & Steel (BM) in Nigeria. Using the DOLS technique of analysis. Trade liberalization was proxied with Trade Openness (OP); other variables expressed exogenously were Labour Force (L), Foreign Direct Investment inflow into manufacturing sector (FDI) and Exchange Rate (EXCH). The results of analysis led to the conclusion that trade liberalization does not have significant impact on FBT,CEM, and BM in Nigeria. FDI is positively signed and thus have direct impact on the three sub-sectors. The policy implication of the afore-mentioned results of analysis is that FBT, CEM, and BM sub-sectors in Nigeria benefitted chiefly from Foreign Direct Investment inflow, which finds expression in innovative processing ideas, new technologies, capacity building for employees, world class managerial suite of skillsand more. Also, the coefficient of the labor force (L)is positive and impacts on FBT model suggest that FBT sub-sector employed more people than others, especially under trade liberalization regime. Government therefore should urgently re-strategize and synergies her foreign trade policies with industrial policies to facilitate beneficial trade. For instance, the Government needs to do a proper assessment of the African Continental Free Trade Area Framework before signing on to the agreement, create manufacturing and investment friendly climate. This will no doubt enhance the performance of these sub-sectors, facilitate beneficial trade and prevent an avoidable influx of cheap and inferior foreign products that could negatively affect the manufacturing sub-sectors. Again, there is a need to sustain Nigeria's foreign policies that attract more FDI inflow into the economy, particularly to the manufacturing sub-sectors.

Impact of Entrepreneurship and International Trade on Economic Growth and Development in Nigeria

“…BOT and NEXP have positive significant impact on GDP while EXR and BOP shows a negative impact. Osidipe (2018) assessed the impact of Trade Liberalization on some selected manufacturing sectoral groups: The results of analysis led to the conclusion that trade liberalization does not have significant impact on FBT, CKM, and BM in Nigeria. FDI is positively signed and thus have direct impact on the three-sub-sectors.…”

Effect of International Seaborne Trade on Productivity of Ports in Nigeria

“…Exports are one of the oldest forms of economic transfer and occur on a large scale between nations that have fewer restrictions on international trade such as tariffs or subside. According to Osidipe et al (2018) the term export derives from the goods and services out of the port of a country. The seller of such goods and services is referred to as an exporter whereas the overseas based buyer is referred to as an importer.…”

“…Furthermore, more reliance on the government for tax revenue in their expenditure will lead to tax evasion and inefficiency procedures. Osidipe et al (2018) analysed trade liberalization and selected manufacturing sectoral groups in Nigeria employing the gravity model a large country sample and a long time series to estimate the impacts of successive FTAs and WTO admission on Nigeria's exports and imports. The authors discovered that multilateral or preferential trade liberalization has no statically relevant influence on exports and imports.…”

“…Trade is the key to long-term sustainable economic growth and development in sub-Saharan Africa (Shaw 2018). Osidipe et al (2018) found that both imports and have the potential to positively impact economic growth in African countries. This is explained by the fact that Africans trade the least with each other than all the other continents (Shaw 2018;UNCTAD, 2022).…”