ABSTRACT
This study investigates the impact of information communication technology (ICT) on manufacturing output in Nigeria from 2000 to 2022. The research reveals several key findings. Firstly, ICT exports positively and significantly influence manufacturing sector output in the short run. Conversely, ICT imports exhibit a negative and insignificant impact on the sector. A long-run relationship among the variables was established, with the error correction term indicating a 62% adjustment of previous shocks annually. In the long run, ICT exports maintain a positive but insignificant impact, while ICT imports remain negative and insignificant.
The study recommends policies to enhance ICT exports, including removing bottlenecks such as high exchange rates and bureaucratic hurdles. Identifying and incentivizing key ICT export products and restricting ICT imports are also advised. Future research should explore ICT's effects on other sectors of the Nigerian economy and identify ICT products where Nigeria holds a comparative advantage.
This study employs the Autoregressive Distributed Lag (ARDL) method, along with all other necessary preliminary and post-diagnostic tests.
The findings underscore the necessity for strategic investment and policy adjustments to leverage ICT for manufacturing sector growth, addressing challenges to maximize ICT exports benefits.
