Productivity growth in Nigerian manufacturing and its correlation to trade policy regimes/indexes (1962–1985)
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Date
2002-11-01
Authors
Louis N. Chete
Adeola F. Adenikinju
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
While the centrality of productivity enhancement to growth acceleration is one issue
around which broad consensus exists in theory and empiricism, the role of trade policy
in fostering productivity growth has received only modest attention. Recently, however,
a considerable body of knowledge has accumulated on the importance of trade policy to
the productivity process.
To be sure, there are two divergent perspectives. One view posits that trade
liberalization will stifle industrial productivity by opening up the economy to superior
foreign products, compelling infant industries to close up. The other, and more pervasive,
holds that outward-oriented trade policy will engender overall industrial efficiency in
the economy by exposing local firms to competition and thereby improve the allocation
of resources across sectors.
This paper computes total factor productivity growth (TFPG) for the aggregate
manufacturing sector of Nigeria and across the various subsectors and correlates these
with specific indexes of trade policy. The results generally corroborate the mainstream
view of a positive correspondence between trade liberalization and productivity growth.
Description
HC 800 . A1
Keywords
Manufacturing - Industries , Nigeria , Commercial Policy , industrial productivity