Open AccessThe African Continental Free Trade Area and Its Employment-Generation Potentials in Nigeria’s Industrial Sector
Author(s) -
Oziengbe Scott Aigheyisi
Publication year - 2021
Publication title -
economy, business and development
Language(s) - English
Resource type - Journals
eISSN - 2671-3470
pISSN - 2671-3462
DOI - 10.47063/ebd.00004
Subject(s) - openness to experience , cointegration , error correction model , economics , short run , secondary sector of the economy , international economics , macroeconomics , economy , econometrics , psychology , social psychology
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 19912020. 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.