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THE EFFECTS OF TECHNICAL PROGRESS AND SALES TURNOVER ON EMPLOYMENT OF LABOUR IN KANO AND KADUNA TEXTILE FIRMS
ABSTRACT
There are two divergent views about the effect of technical progress on employment. One view states that technical progress is associated with an increase in the employment of labour owing to the introduction of new products and increased productivity, which help to create new demand for labour and material resources. The other view argues that technical progress displaces workers owing to automation and robotization of jobs/tasks formerly handled by several workers. Cross-sectional and time series data from Nigerian textile industry provide opportunity to evaluate
these viewpoints. Employing regression model and OLS technique of estimation, the study establishes on the basis of economic, a priori, statistical and second order tests criteria that technical progress in the Nigerian textile industry appears to be associated with a decrease in the employment of labour. Specifically, it is found to have a negative effect on the employment of unskilled labour and a positive effect on the employment of skilled labour. The results also confirm that the negative employment effect outweighs the positive employment effect when the effects are
considered simultaneously. The sales turnover variable was also found to be positively associated with the employment of labour. The values of R2 in the three equations of the model were reasonably high indicating goodness of fit. Most of the parameter estimates were also found to be statistically significant. Equally, when the second order econometric tests such as Park (1966) heteroscedastic test and Ramsy (1969) model specification error test were conducted in order to test for the violations of the desirable properties of the technique of estimation used, the results of the various tests do not appear to invalidate the initial findings of the study. On the basis
of the overall results, one major recommendation is that solutions to Nigeria’s unemployment problems should not be found in massive control of techniques used by firms and technological progress in Nigeria textile industry, in the interest of higher productivity, long run growth and competitiveness in the world market.
Instead a package or an economy wide approach should be adopted. This involves the rapid and massive promotion of small and medium scale enterprises that can integrate both forwardly and backwardly with bigger industries in conjunction with carefully designed tax and subsidy policies as well as the promotion of industrial
research activities that can modify on gradual basis or find local substitute to our industrial raw materials, machinery and equipment. Future research in the area of this study should focus attention on a more rigorous econometric approach through richer data sets and disaggregated modeling to provide a more solid footing tor the
results of this study.
TABLE OF CONTENT
Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi
CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10
CHAPTER TWO
LITERATURE REVIEW – – – – – – -11
CHAPTER THREE
Research methodology – – – – – – -39
Design of study – – – – – – – -40
CHAPTER FOUR
Presentation, analysis and interpretation of data – -48
CHAPTER FIVE
Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69
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