A principal component analysis (PCA) was conducted on 67 items with orthogonal rotation (varimax).The Kaiser–Meyer–Olkin measure verified the sampling adequacy for the analysis, KMO=.771 andall KMO values for individual items were>.50, which is slightly above the acceptable limit of .5(Field, 2009). Bartlett’s test of sphericityχ2(2211)=2.480, p<.001, indicated that correlationsbetween items were sufficiently large for PCA. An initial analysis was run to obtain eigenvalues foreach component in the data. Seventeen components had eigenvalues over Kaiser’s criterion of 1 andin combination explained 75.65% of the variance. The study hypothesized that the expansion in vesselfleet has no significant relation with employment status and annual income of respondents due to theimplementation of Cabotage Law in Nigeria. The output also shows that annual income is negativelyrelated to the fleet expansion of vessels, with a coefficient of r=-.103, which is significant at p<.001.Finally, employment status is positively related to the annual income, r=.454, p<.001. However,the output shows a different relationship, fleet expansion of vessels is negatively related with annualincome, with a coefficient of r=-.103, which is also not significant at p<.001. Finally, employmentstatus is positively related to the annual income of respondents, r=.454, p<.001. We can thereforeconclude that the enactment of the cabotage law is yet to impact strongly on the annual income as wellas the employment status of respondents. The study recommended that the implementing agencies ofthe law should kick-start the implementation by giving the indigenous operators the encouragement asstipulated in the Act for fleet acquisition
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