A cost function analysis of import demand for Nigeria

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The article uses a translog cost function to examine the substitution relations among capital, labour and imports. The results show that capital has a substitute relation with domestic labour and import. However, labour and import have complementary relationship. The implication of this finding is that liberalization policies, if pursued vigorously, could impart positively on the demand for labour. In addition, it suggests that economic growth could be enhanced through trade liberalization.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600993932

Affiliations: Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

Publication date: November 1, 2008

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