Title: Efficiency Effect of Free Trade Agreements on Services Sector Productivity Growth in Nigeria
Authors: Ebikabowei Biedomo Aduku and Ebele Stella Nwokoye
Volume: 9
Issue: 8
Pages: 185-191
Publication Date: 2025/08/28
Abstract:
This study examines the efficiency effect of Free Trade Agreements on services sector productivity growth in Nigeria under the stochastic production frontier framework. The study covered the periods from 1970 to 2022. The data was analyzed using the frontier estimation technique. Empirical results showed that that Nigeria's free trade agreements with other African countries had an insignificant efficiency effect on Nigeria's services sectors productivity growth. It was also found that population had a positive and significant effect on services sector productivity growth. Also, external debt had negative and significant effect on services sectors productivity growth, while gross fixed capital formation had positive and significant effect on services sectors productivity growth. Policymakers should design policies that encourage research and development (R&D) and facilitate the spread of advanced technologies, which can amplify the potential efficiency gains from free trade agreements. Likewise, policymakers should develop measures to alleviate acute productivity inefficiencies while setting the framework for long-term productivity gains.