DOI: 10.36347/sjebm.2015.v02i06.009

Pages: 639-642

This study examined the impact of Nigeria’s import on the manufacturing sector employment. The Generalized Methods of Moments (GMM) estimation technique was adopted to estimate the model. The framework of the study was anchored on the more recent study of Felbermayr et al (2011).The results revealed that a 1% increase in import caused employment in the manufacturing sector to decline by 6%. 1% increase in inward Foreign Direct Investment (FDI) increased employment by 2.1% whereas a 1% improvement in the Growth Rate of GDP (GRGDP) increased employment rate by 8%. In addition, a 1% increase in Per Capita GDP (PCGDP) increased employment rate by 7%. Markedly, it was discovered that a 1% increase in POP caused employment rate to decline by 4%. The Hansen J-test was not significant, implying that the instruments used in the GMM were valid.