IMPACT OF GLOBALIZATION AND TRADE LIBERALIZATION ON LABOUR MARKET IN NIGERIA

Abstract

This study analyses the impact of globalization and trade liberalization on the labour market in Nigeria. Data on trade openness, balance of trade, import duties, exchange rate and labour force were used in formulating the model. The study applied the error correction model technique in analyzing the data. The findings reveals that trade openness and import duties positively affected growth of labour force in Nigeria; only import duties significantly affected labour force. Also, balance of trade and exchange rate had negative effects on labour force with only exchange rate decreasing labour force significantly. The study concludes that globalization and trade liberalization have had positive effects on the labour market in Nigeria, specifically; trade openness and import duties have increased the labour force in Nigeria from year to year thereby leading to increased production and growth of the economy. The expected impact of globalization and trade liberalization on labour force in Nigeria confirms the fact that globalization/trade liberalization has had a multiplier effect by increasing labour force and output of other economic sectors. The study advocated for increased trade openness via increase in volume of exports, development of local technology to boost output and increased access to foreign market to further enhance the country’s labour force.