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Abstract
This study examined empirically the industrial output, trade openness and economic growth in Nigeria from 1981 to 2020 by employing the use of ARDL methodology. Pre-estimation tests such as ADF unit root test, residual based test, optimal lag selection criteria were carried out. The ADF test revealed that all the variables were stationary at first difference. Also, the bound test for co-integration revealed that the variables have long-run associations. Based on the ARDL model results, it was discovered that only industrial output significantly influences economic growth in Nigeria. While trade openness, government capital expenditures, and balance of trade were found not to significantly influence economic growth in Nigeria between the period under consideration. To this end, industrial output is a primal variable in stimulating economic growth in Nigeria. In light of the above findings, this study recommends amongst others that the Nigerian government should commit more financial resources to the industrial sector, particularly in the generation and distribution of energy, in order to reduce the country's cost of production. This would undoubtedly lower production costs and improve exports resulting in increased output in the industrial sector and the economy at large.
Key Words: Economic growth, Industrial output, trade openness.
