Does Trade Liberalisation Hurt Nigeria’s Manufacturing Sector?

Abstract

This study examines the role of trade liberalization in the growth of manufacturing output in Nigeria, focusing on the short to medium term period while not ignoring the very important long term on which most studies have focused. Data for the period 1980 to 2013 were obtained from CBN and WDI, with which parameter estimates were extracted for the short to medium term using the error correction mechanism. Trade liberalization was found to hurt manufacturing output in the short run although it showed a real potential to boost it in the long term. An overhaul of competition policy was recommended with a view to establishing Neutral Status in manufacturing export trade.