Manufacturing Value Added and Employment in Nigeria: A Subsectoral Diagnosis

Abstract

The study examined a sub-sectoral diagnosis of the impact of manufacturing value-added on manufacturing employment in Nigeria from 1986 to 2022, applying the bound test technique to establish the long run relationship among the variables. It was revealed that long run relationship exists among the variables in the estimated model. The results of the Error Correction Mechanism (ECM) within the framework of the ARDL shows that the value addition in manufacturing sector has spurred employment over the years. The study recommends among others that; there should be development of policy on cement manufacturing which will emphasize creating opportunities for more players to enter into cement manufacturing; the government should prioritize improving infrastructure and transportation networks to facilitate the distribution of cement products across the country, as this will increase demand and ultimately lead to job creation in the industry; strong policy on incentives for textile, apparel and footwear manufacturers as well as investment in research and development of textile, apparel and footwear production methods should be pursued; and efforts should be made to ensure that the benefits of this subsector are distributed equitably across different regions and socioeconomic groups.

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