– Industrial Sector Growth and Economic Performance in Nigeria –
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ABSTRACT
This research work set out to investigate industrial sector growth and economic performance in Nigeria. The study employed multiple regression models and Granger causality model using secondary data from 1981 to 2015.
Results show that the coefficient of crude petroleum and natural gas, solid mineral variables and manufacturing sub-sector growth are positive and statistically significant.
From the Granger causality result, bidirectional causality does not exist between economic growth and industrial sector performance in Nigeria.
However, there is a unidirectional causal relationship between industrial sector performance and economic growth at lag 4 and lag 6.
However, there is no significant structural break in economic growth especially between military and democratic rules in Nigeria. Also, the Engle-Granger cointegration suggests that there is a long-run relationship.
INTRODUCTION
The critical role of the industrial sector is predicated on the fact that it acts as an engine of growth bybroadening the productive and export base of the economy, reducing unemployment and stemming rural-urbandrift as well as helping to reduce poverty, (Umoro and Eborieme, 2013).
Nigeria is an open economy. Accordingly, developments ininternational circles have profound implications on the path the country is going in terms of the development ofher industrial sector. It has been the goal of trading with countries to obtain improved and more secureaccess to markets abroad.
This is intended to provide the country with the opportunity to explore economies ofscale beyond the limit of the domestic market and facilitate access to foreign exchange with which to financecritical imports needed for development (Adenikinju 2002).
REFERENCES
AdenikinjuA.F. and L.NChete (2002), “Productivity, Market Structure and TradeLiberalization in Nigeria”. African Economic Research Consortium (AERC) Research
Adenikinju, A.F. (2002), Trade Liberalization, Market Structure and Productivity in Nigerian Manufacturing.Interim Report Presented at AERC research
Ayodele, A. I. and G. Falokun (2003), The Nigerian Economy: Structure and Pattern ofDevelopment. JODAD Publishers
Bakare, A. S. and F.OFawehinmi (2011) “Trade Openness and Its Impact on Nigeria’s Non-Oil Industrial Sector: 1979-2009” Economics and Finance Review, Vol.1 (5): 57- 65,July
CBN, 2003. Contemporary economic policy issues in Nigeria. Abuja,Nigeria: CBN Publication.
Central Bank of Nigeria (2007), Annual Report and Statement of Accounts, December
Central Bank of Nigeria (2012), Annual Report, December
Dickey, D.A., Fuller W. A. (1981). Likelihood Ratio statistics forAutoregressive Time Series with a Unit Root.Econometrical,49, 1057-1072.
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