MANUFACTURING PERFORMANCE IN NIGERIA: IMPLICATION FOR SUSTAINABLE DEVELOPMENT
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 9
Abstract
The study examined manufacturing performance for sustainable economic development in Nigeria, while the specific objectives are as follows: i) to look at the growth rate and contribution of manufacturing to GDP. ii) to examine trend in both manufacturing and employment. iii) to determine the structure of capacity utilization. iv) to determine factors influencing manufacturing performance. Panel data analysis was used on secondary data from 1980-2008 that was extracted from CBN Statistical Bulletin. The results indicate positive relationship between manufacturing and each of capacity utilization and import as 1 percent change in capacity utilization and import lead to 43081 and 3.8 percent change in manufacturing respectively. However, there is a negative relationship between manufacturing and each of investment, exchange rate, and export. A 1 percent change in investment, exchange rate and export lead to 0.04, 12729, 0.3 percent reduction in manufacturing respectively. The t-values for investment, capacity utilization and import were used to test the hypothesis that each coefficient is different from 0. This is rejected; since the t-value are lower than 1.96 (at 95% confidence level). This showed that investment, capacity utilization and import were major determinants of manufacturing performance for the period. The study concludes that the key to reversing the poor performance of Nigerian manufacturing is to provide incentives for firms to become more export oriented.
Authors and Affiliations
Olorunfemi Sola| Department of Economics, Adekunle Ajasin University Akungba, Ondo State Nigeria, Tomola M. Obamuyi| Department of Banking and Finance, Adekunle Ajasin University Akungba, Ondo State Nigeria, Felix O. Adekunjo| Department of Economics, Lagos State University, Lagos Nigeria, E. O Ogunleye| Department of Economics, Ekiti State University, Ekiti State Nigeria
Keywords
Related Articles
- EP ID EP1954
- DOI -
- Views 2019
- Downloads 278
THE EFFECT OF NHIA DEBT ON ACCOUNTS PAYABLES MANAGEMENT IN PUBLIC HOSPITALS
NHIS has become a key means of ensuring accessibility to improved health care delivery in many countries. Indebtedness on the scheme to the public hospitals are high on the accounts receivable structure and its payments...
WHAT MATTERS FOR ECONOMIC GROWTH IN PAKISTAN: FISCAL POLICY OR ITS COMPOSITION?
This study employed autoregressive distributed lag (ARDL) model to examines the impact of various fiscal policy variables, such as, productive expenditures, non-productive expenditures, distortionary taxes and non-distor...
PAIRS TRADING STRATEGY IN DHAKA STOCK EXCHANGE: IMPLEMENTATION AND PROFITABILITY ANALYSIS
The objective of this study is to develop a financially profitable Pairs trading model for trading in Dhaka Stock Exchange. Pairs Trade is a statistical arbitrage investment strategy. The study used daily stock prices of...
THE EFFECTS OF INDEPENDENT MANAGERS, INSTITUTIONAL SHAREHOLDERS AND AUDIT EXPENSES ON THE PROBABILITY OF FINANCIAL CRISIS
This paper examines the impact of independent managers, institutional shareholders and audit expenses on the probability of financial crisis of the listed companies in Tehran Stock Exchange (TSE). The target sample inclu...
WAGNER’S LAW IN SAUDI ARABIA 1970 - 2012: AN ECONOMETRIC ANALYSIS
Our goal in this paper is to explorethe validity of Wagner’s Law in Saudi Arabia during the period (1970-2012) for real oil GDP and Non-oil GDP.Wagner’s Law investigated that fundamental economic growth is validity to th...