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The Effects of the Expiration of the World Trade Organization's Multi Fibre Agreement on Nigeria's Textile Industry

The Effects of the Expiration of the World Trade Organization's Multi Fibre Agreement on Nigeria's Textile Industry

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DEDICATION

This research material, titled “The Effects of the Expiration of the World Trade Organization's Multi Fibre Agreement on Nigeria's Textile Industry” is dedicated to God for His boundless grace and guidance. It is also a tribute to all computer enthusiasts whose contributions made my research journey smoother and enriched my documentation process, making the experience truly fulfilling.



ACKNOWLEDGEMENT

I am profoundly grateful to everyone who contributed to the successful completion of this project. I am especially grateful to my Supervisor (Name), the Head of Department (Name), and the Lecturers in the Department of Political Science for their invaluable guidance and support. I also acknowledge the contributions of authors and scholars whose works on The Effects of the Expiration of the World Trade Organization's Multi Fibre Agreement on Nigeria's Textile Industry provided essential insights. Special thanks go to my study area (and any funding organizations, if applicable) for their financial assistance. I am equally thankful to stakeholders, including mentors, teachers, and colleagues, for their encouragement and support. Finally, I deeply appreciate my family and friends for their patience and unwavering support throughout this journey. Your contributions have been instrumental in making this research a reality.



TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies
    • 2.5 Research Gaps
    • 2.6 Summary of Literature Review

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”


    ABSTRACT

    This research work examines the effects of the expiration of WTO’s Multi-Fibre Agreement (MFA) on Nigeria Textile Industries. The aim of this study was to examine the effects of the expiration of WTO’s Multi-Fibre Agreement (MFA) on Nichemtex Limited Ikorodu, Lagos; 2001 to 2010. However, the specific objectives of the study are: To ascertain the nature of WTO’s Multi-Fibre Agreement; to examine the extent to which the expiration of WTO’s
    Multi-Fibre Agreement (MFA) has affected the Nichemtex Nigeria Limited between 2001-2010; to identify the extent to which the accession of China into World Trade Organization (WTO) arising from the expiration of the Multi-Fibre Agreement (MFA) has affected the Nichemtex Nigeria Limited between 2001-2010. The study reviewed relevant literature on the problem under investigation.

    The study relied on both primary and secondary data which was generated through In-depth interview, questionnaire for the primary sources and secondary sources which comprised of the use of books, journals, articles, internet materials, etc for the purpose of complementarity. From the analysis of the data, the study found out the followings: First, the expiration of Multi Fiber Agreements impacted negatively on Nigeria’s textile industries; Second, contrary to the popular and general perception of the people, the study has shown that the collapse of textile industries in Nigeria was as a result of the trade liberalization policies of the WTO; in addition to both external and internal factors responsible for the collapse of these industries and internal factors played major roles.

    The study has also shown that the trade liberalization policies of the WTO favours Advanced Countries over the developing countries. Finally, trade liberalization policies of the WTO has reduced effects of textile industries’ contributions to national development in terms of its Gross Domestic Product, employment generation and flow of Foreign Direct Investment (FDI).The study however made the following recommendations: There is the need for a rethink on the ideological and uncritical commitment to wholesale acceptance of trade liberalization policies without considering the peculiarities of our environment; Government should ensure that taxes payable by these industries should be fewer in number, broad based and high revenue yielding with positive impacts on industry’s production; this can be done by improving infrastructure, skills and institutions required by modern production and distribution; Government can take advantage and invoke WTO safeguards on textiles which allows countries to temporarily protect industries that is considered a threat to foreign competitors; Government should support textile industries to combat smuggling and lower import taxes on mechanical equipment and other inputs; Nigeria must build the environment for conducive competitiveness by developing all the physical and human infrastructure for the fierce competition.


    The Effects of the Expiration of the World Trade Organization’s Multi Fibre Agreement on Nigeria’s Textile Industry

    CHAPTER ONE

    Introduction

    1.1. Background to the study

    What is today known as Multi Fiber Agreement under World Trade Organization (WTO) had its root from General Agreement on Tariffs and Trade (GATT) as the only multilateral instrument governing international trade on textile and clothing. Multi Fiber Agreement was established in 1974 as a short term measure to allow developed countries to adjust to imports from developing world. It is an international agreement under which two countries may negotiate quota restrictions on textile and apparel imports from each other. The Multi Fiber Agreement was therefore set up as a set of formal quota agreements and restrictions governing textiles and clothing trade between developing countries and developed world. The expiration of Multi Fiber Agreement (MFA) in 2005 heralded tremendous opportunities and uncertainties for the textile industries in both developed and developing countries.
    Naumann (2006) has argued, no other sector has seen such a rigid institutionalisation of quantitative restrictions, which in turn have had very wide reaching intended and unintended consequences on textile industries in Nigeria. In fact, quotas in this sector have been the common denominator that have shaped the development path of the textile industries and have been the single most important factor contributing to its worldwide diffusion in recent decades.

    With the WTO Agreement on Textiles and Clothing providing a scheduled removal of MFA quotas over the decade 1995 − 2005, global changes relating to quota phase-out took place during the early stages of the Agreement. It is against this backdrop that this study examined the effects of the expiration of the MFA on Nichemtex Nigeria Limited, Ikorodu, Lagos.

    However, it is important to note that from 1974 onwards, world trade in textiles and clothing has been governed by the Multi-Fibre Arrangement (MFA) under which many industrial.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the conceputal review, theoretical framework, the review of related literature …

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