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Trade Liberalization and Performance of the Nigerian Textile Industry

Trade Liberalization and Performance of the Nigerian Textile Industry

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DEDICATION

This research material, titled “Trade Liberalization and Performance of the Nigerian 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 Business Administration and Management (BAM) for their invaluable guidance and support. I also acknowledge the contributions of authors and scholars whose works on Trade Liberalization and Performance of the Nigerian 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

    Nigerian textile industry is characterized with ineffective incentives, political uncertainty, acute power shortage, poor infrastructure, smuggling and red-tape bureaucracy, among others. However, government of Nigeria in appreciation of the role of industrialization in growth process now motivates firms. This is done through various government policies and establishment of various agencies. All these policies were designed to address these problems and encourage textile industry performance with a view of diversifying the productive base of the economy and increase its output for both domestic and export earnings. These problems necessitated the need to examine the effect of trade liberalization on textile industry performance in Nigeria.

    The study modified the endogenous growth model within a time series estimation techniques of Autoregressive Distributed Lagged model (ARDL). The data spanned between 1986 and 2015, while four different models were tested. Findings revealed a co-integrated relationship for all model estimated. Specifically, the effect of simple tariff rate on textile industry is negative and statistically significant in the long-run; while trade liberalization policy measure through simple tariff rate has a lag effect before it can be effective in the textile industry. In both short and long run, real effective exchange rate depreciation worsens the performance of textile industry in Nigeria. Similarly, the effect of weighted tariff rate on textile industry is negative and statistically insignificant, while short-run result evidence that trade liberalization policy measure through weighted tariff rate has a lag effect before it can impact on textile industry performance in Nigeria. Specifically, a 1.0% rise in past weighted tariff rate value (trade liberalization policy) raises the level of textile performance by about 0.99%, while the current increases in tariff rate improve the textile industry performance by 1.19% over the period of analysis, though not significant. In the long run, a 1.0% rise trade openness would decrease the level of textile industry performance by about 17.49%. Thus, factors affecting textile industry performance in the short run are simple tariff rate, exchange rate changes, trade openness and labor and capital inputs in Nigeria. Similarly, causality tests results showed unidirectional causality running from trade liberalization (both measure) to textile industry performance.

    The study concluded that trade liberalization has both lag and significant effects on the performance of the Nigerian textile industry from 1986 to 2015. It was recommended that government should make concerted efforts toward providing a favorable and conducive business environment for the textile industry to strive.


    Trade Liberalization and Performance of the Nigerian Textile Industry

    CHAPTER ONE

    1.1 Introduction

    … As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of technical terms.…

    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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