Open AccessEstimation of Informal Sector of the Nigerian Construction Industry
Author(s) -
Oyewale Julius Ojo,
Babatunde Yusuf,
Jonathan A. Aremu
Publication year - 2020
Publication title -
international journal of scientific research in science, engineering and technology
Language(s) - English
Resource type - Journals
eISSN - 2395-1990
pISSN - 2394-4099
DOI - 10.32628/ijsrset207235
Subject(s) - estimation , instrumental variable , informal sector , consumption (sociology) , ordinary least squares , variables , regression analysis , economics , variable (mathematics) , secondary sector of the economy , construction industry , production (economics) , cement , business , econometrics , statistics , economy , mathematics , engineering , economic growth , macroeconomics , geography , mathematical analysis , social science , management , sociology , construction engineering , archaeology
The study estimated the output of informal sector of the Nigerian Cement Industry through the consumption of cement by the Nigerian Construction industry. The research was conducted using secondary data. The study adopted the statistical model of informal sector estimation, Nigeria construction industry being cement intensive, cement consumption approach was used for the estimation of the informal sector of the industry by using annual cement consumption as an independent variable against the annual construction output in a time series regression analysis, treating the informal sector output as an omitted variable in the ordinary least square method of estimation. Annual value added tax (VAT) pool data set was chosen as an instrumental variable. Using the instrumental variable method of estimation, the informal sector proportion of the Nigeria construction industry was therefore estimated. The study concluded that the informal sector of the Nigerian construction industry is 4.07 percent of the industry's output.