Long Run Effect Of Trade Openness On Unemployment In Nigeria

Integrating the world economy through trade openness helps reduce poverty and unemployment. Despite the influence of trade openness to employment generation, the unemployment in Nigeria continues to rise. This study examines the effect of trade openness on unemployment in Nigeria, covering the period from 1982 to 2022. The study used Auto Regressive Distributed Lag (ARDL). The computed ARDL results indicate that trade openness (TRO) reveals a negative and significance impact on unemployment (UNE) in the long run. Specifically, a percent increase in trade openness is associated with a decrease in Nigeria's unemployment. Similarly, trade openness (TRO) shows a negative and significant impact on unemployment (UNE) in Nigeria. Specifically, a percent increase in trade openness is associated with decrease in unemployment. Based on these findings, the study recommends that the country must embark on necessary reforms and adopt sound policies to provide employment solutions to address the issue of unemployment.