Author: Abiodun O. Folawewo & Adeniyi Jimmy Adedokun
Year:2012
Abstract: This study examines empirically via two channels the impact of real exchange rate on sectoral employment in Nigeria between 1970 and 2010. The study focuses on three main sectors of the economy agriculture, manufacturing and services. The results of the empirical analysis indicate that among the three sectors, the manufacturing sector feels the greatest effect of real exchange rate adjustments. Specifically, the results show that the rate of adjustment of manufacturing sector employment to changes in real exchange rate is faster than those of the agricultural and services sectors. The findings of the study have important implications for employment generation in Nigeria thereby suggesting the need for proper management of the naira exchange rate, and the need for a well developed manufacturing sector.