Journal of Economics Theory
ISSN: OnlineISSN: Print 1994-8212
Abstract
In the recent years, unemployment has been a serious challenge to the government at all levels and policy makers in Nigeria. Employing a Generalized Autoregressive Conditional Heteroscedasticity (GARCH) Modelling, this study examines the employment effect of real exchange rate volatility in Nigeria’s manufacturing sector between the year 1970 and 2008, via two well-defined transmission channels, namely; export orientation channel and import penetration channel. The empirical analysis suggests that exchange rate volatility has a significant positive effect on manufacturing employment through the export orientation channel where as has an insignificant effect through the import penetration channel. This therefore calls for proper diversification of the country’s economy to accommodate and improve the role of other sectors particularly manufacturing that can contribute to employment generation than the dominant oil sector.
How to cite this article:
Adeniyi Jimmy Adedokun. Employment Effect of Exchange Rate Volatility in Nigeria’s Manufacturing Sector.
DOI: https://doi.org/10.36478/jeth.2012.14.25
URL: https://www.makhillpublications.co/view-article/1994-8212/jeth.2012.14.25