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The African Continental Free Trade Area and its Employment-generation Pontentials in Nigeria's Industrial Sector

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  • Oziengbe Scott AIGHEYISI

    (Institute of Health Technology University of Benin Teaching Hospital, Benin City, Nigeria)

Abstract

The study empirically examines the employment generation potentials of the African Continental Free Trade Area (AfCFTA) in Nigeria’s industrial sector. The ARDL approach to cointegration and error correction modeling is employed for analysis of annual time series data covering the period 1991-2020. The study finds inter alia that the short run effect of expansion of intra-African trade (expected to result from the AfCFTA) on industrial sector employment is positive and statistically significant. The long run effect is also positive, but not statistically significant. It also finds that trade openness–integration of the economy with the global market–significantly enhances employment generation in the nation’s industrial sector in the long run; though the short run effect is negative and significant.These suggest that the country’s membership of the AfCFTA and implementation of policies aimed at (cautiously) deepening the integration of the economy with the global market should be considered as supplementary avenues to achieving (sustainable) employment generation in the nation’s industrial sector in the short- and long-run. Other evidence-based policy recommendations are discussed.

Suggested Citation

  • Oziengbe Scott AIGHEYISI, 2021. "The African Continental Free Trade Area and its Employment-generation Pontentials in Nigeria's Industrial Sector," Economy, Business & Development: An International Journal, Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje, vol. 2(2), pages 21-38, November.
    • Handle: RePEc:aoh:journl:v:2:y:2021:i:2:p:21-38
    DOI: 10.47063/ebd.00004
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    More about this item

    Keywords

    African Continental Free Trade Area; Intra-African Trade; Global Trade; Industrial Sector; Employment; Unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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