CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Industrialization is a term that is mostly associated with the development in Western Europe and North America during the 19th and 20th centuries. In this early sense, it is referred to a marked departure from a subsistence economy that is largely agricultural towards a more mechanized system of production that entails more efficient and highly technical exploitation of natural resources in a highly formal and commercialized economic setting (Samita, 2001; Rapley, 1997). As such, industrialization was understood purely in economic terms particularly the physical presence of individual plants that was involved in manufacturing capital goods either for further use or purposes. By the beginning of early 20th century therefore, a country’s industrialization was measured by the percentage of plants and or industries involved in manufacturing as well as the volume of labour within such industries (Todaro, 1989).
In recognition of the importance of industrialization to economic growth and employment generation in Akwa Ibom State, independence has adopted various policies, incentives and schemes to promote industrialization and employment generation. Some of these policies include the import substitution that became current in 1960s, indigenization policy that started in 1972, structural adjustment programme (SAP) of the late 1980. In 2000, the Bank of Industry and small and medium equity investment scheme were established to reduce credit constraint faced by entrepreneurs. Recently in 2017, the federal government adopted the National Integrated Industrial Development (NIID) blue print. Despite these policies and incentives available, there are a lot of controversies as to how industrialization is to be achieved.
In Akwa Ibom State from (2015 – 2018), Udom Emmanuel led administration has done exceedingly well in terms of industrialization. This is seen in his speech on May 29 when he reminded the people of the state that the only sure way to the reduction of unemployment, creating of wealth for the people of Akwa Ibom State is to bring in industrialization. He told members of the state executives that our commitment to industrialization is irrevocable we know that through industrialization, we shall rewrite the Akwa Ibom story on employment and wealth creating that will pump the veins of our encoring to overflow and take us to the highest rank of economic ascendency. To the Governor, the project is what he is planning for the state especially by bringing in Akwa Ibom indigenes, irrespective of ethnic, political or senatorial learning from within or in Diaspora to help, turn around to an enviable position key to ending poverty, idle minds, above all, reducing the high rate of unemployment in Akwa Ibom State.
Industrialization which is a deliberate and sustained application and combination of appropriate technology infrastructure, managerial expertise and other important resources has attracted considerable interest in recent times. This is because of the critical role industrialization plays in economic development, industrialization acts as a catalyst that accelerates the pace of structural transformation and diversification of economies; enable a country to fully utilize its factor endowments and to depend less on foreign supply of finished gods and raw materials for its economic growth, development and sustenance (Sanusi, 2001).
1.2 Statement of the Problem
In-spite of the number of industries in Akwa Ibom State, it has been observed that they have not actually done well in the area of employment generation. Notwithstanding that industrialization can lead to employment generation, increase in productivity and others.
Akwa Ibom State has not achieved full industrialization that can generate employment, as a result of this lack of adequate industrialization, many youth has become jobless. This joblessness has made some of the youth to become criminals, there has been increase in corruption and other crimes, and all this is as a result of lack of employment generation.
Industrialization is a term associated with the development especially technological development in the state. In Akwa Ibom State, if there is industrialization, there will be a lot of development in the state that will lead to employment generation. Unemployment and underemployment in Akwa Ibom State causes tremendous challenges in terms of sustainable job creation and productivity. In fact, the incidence of high unemployment has become a major socio-economic challenge over the past decades thereby making most people to engage in trade than waiting for white collar jobs.
In recent years, job creation and the quality of jobs have been marred by a slowdown in economic growth and the recession. When there is no industrialization, the economy cannot grow. It is within this context that the study focuses on industrialization and employment generation.
1.3 Research Objectives
The main objective of the study is to examine the impact of industrialization and employment generation in Akwa Ibom State from 2015-2018.
The specific objectives are to:
(i) determine the contribution of industrialization to employment generation;
(ii) examine how industrialization of agriculture increases employment; and
(iii) determine how industrialization of service firms improve employment in Akwa Ibom State.
1.4 Research Question
What is the effect of industrialization and employment generation in Akwa Ibom State?
Are there employment due to industrialization of agriculture in Akwa Ibom State?
How does industrialization of service firms affect employment generation?
1.5 Research Hypotheses
The study is guided with both null and alternative hypotheses which is denoted using H0 for null hypothesis and H1 for alternative hypothesis.
H0: Industrialization has no significant effect on employment generation.
H1: Industrialization has significant effect on employment generation.
H0: Industrialization of service firms has no significant effect on employment generation.
H1: Industrialization of service firms has significant effect on employment generation..
H0: Industrialization of agriculture has no significant effect on employment generation.
H1: Industrialization of agriculture has significant effect on employment generation.
