Globalization And labour Market Activities In Nigeria

ABSTRACT

This study investigated the effect of globalization and labour market activities in Nigeria for the period 1981-2019 with the help of the ARDL model of estimation and toda and yamamoto granger causality test to determine the level of impact that one variable has on each other. Results showed that Foreign Direct Investment Inflows (LNFDII) had a positive relationship with Labour market in the short and long run period in Nigeria, Gross Fixed Capital Formation % Contribution of GDP (GFCF_GDP) had a weak positive relationship with Labour force in the short run and insignificantly influenced labour market in the long run while Real Effective Exchange Rate (REER) had a positive relationship with Total Labour Force (TLABF) and insignificantly at 5% level of significance in the long run where the result of toda and yamamoto granger causality test indicated a Uni-Directional causality between total labour force and gross fixed capital formation in Nigeria. Based on these findings, the study recommended that Nigeria, as a developing nation, should develop its own domestic technology in order to reap the full benefits of globalization and to prevent macroeconomic volatility, developed countries must liberalize their short-term capital movements gradually in order for globalization to succeed.