Empirical analysis of the impact of globalization on labor force utilization: Evidence from Nigeria

Abstract

In this study, the impact of globalization on labor force utilization, proxied as employment, in Nigeria was addressed with a view to assessing the extent to which globalization has influenced the structure of development in Nigeria. To achieve this, Augmented Dickey Fuller (ADF) test, and cointegration test were performed to investigate the unit root problem and the long run relationship among variables respectively; also an Error Correction Methodology was applied with a view to capturing both the short run and long run dynamic adjustments in employment model. The findings that emerged from the analysis showed that globalization practice could generate negative impact on employment in both short- and long run periods suggesting that if globalization continues as being practiced, globalization could further worsen the extant decrepit state of unemployment in Nigeria other things being equal. It is therefore recommended that government should confront the imminent unavoidable negative effects of globalization with a well –designed policy mix.