ABSTRACT

This study examined the impact of international trade on unemployment in Nigeria. It employed Ordinary Least Square (OLS) technique and Error Correction Mechanism on the data used. This study employed unemployment rate, net export, inflation rate, and exchange rate as economic variables. This revealed that net export has no significant impact on unemployment rate in Nigeria, but exchange rate has. The result of the analysis also showed that net export and exchange rate have a positive relationship with unemployment, while inflation rate has a negative relationship with unemployment. This study therefore recommends that there is the need for devaluation of the currency, so as to increase our exports. The export this time should be finished goods of high quality from our industrial sector. This will not only increase our foreign reserve but also reduce poverty through employment created out of our industrial sector.