Impact of Trade Liberalization on Capacity Utilization of Manufacturing Sectors in Nigeria

This study is aimed at investigating the impact of trade liberalization on capacity utilization of manufacturing sector in Nigeria, through the use of Dynamic Ordinary Least Square Method (DOLS) technique. This study utilized annual time series data which will be collected from secondary sources mainly; the Central Bank of Nigeria (CBN) statistical bulletin of various years, World Development Indicator (WDI) and the National Bureau of statistics (NBS). The findings suggested that trade liberalization has no significant impact on the capacity utilization of the manufacturing sector in Nigeria and concluded that trade liberalization caused de-industrialization and not industrialization in Nigeria over the period of study. Hence, it was suggested as a way forward that to improve trade, lower trade barriers, and simplify regulatory requirements, the government must implement trade facilitation measures. Keyword: Trade Liberalization, Capacity Utilization and Manufacturing Sector