Open AccessManufacturing Sector Performance And Economic Growth In Nigeria
Author(s) -
Adeoye Amuda Afolabi,
Opeyeolu Timothy Laseinde
Publication year - 2019
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1378/3/032067
Subject(s) - distributed lag , real gross domestic product , investment (military) , government (linguistics) , manufacturing sector , causality (physics) , economics , monetary economics , macroeconomics , econometrics , political science , linguistics , philosophy , physics , quantum mechanics , politics , law
The paper attempted to examine the impact of manufacturing sector output on economic growth in Nigeria from 1981 to 2016. The study employed secondary data sourced from the Central Bank of Nigeria statistical bulletin for Autoregressive Distributed Lag (ARDL) model and the Granger causality techniques on RGDP, manufacturing capacity utilization (MCU), manufacturing output (LMO), government investment expenditure (GINVEXP), money supply (LM2) and interest rate (INR). Evidence of long-run and short-run relationships among the variables was established. The results showed that MCU has positive influence on RGDP while LMO also affects RGDP positively. It also showed that GINVEXP has negative effects on RGDP whereas LM2 influenced RGDP positively. Moreover, the result indicated a unidirectional causality between RGDP and MCU, LMO and LM2. Based on the above, the study suggest government should intensify efforts to promote socio-economic infrastructural, macroeconomic and institutional framework in Nigeria to provide favourable environment for external and domestic institutions interactions; so harnessed mobilized funds effectively towards productive manufacturing sector.