THE IMPACT OF MANUFACTURING SECTOR ON ECONOMIC GROWTH IN NIGERIA

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ABSTRACT

This study investigates the relationship between manufacturing sector and economic growth in Nigeria using time series data for the period between 1981 and 2020. Manufacturing sector of the Nigerian economy is currently one of the country's main driving forces responsible for the significant and favorable impact of manufacturing production on economic growth. The study employed the Error Correction Model (ECM) to estimate the relationship between the dependent and independent variables. The key findings of the study shows that Technological Growth Rate has a positive impact on GDP growth rate. This aligns with the expectation that technological advancements can have a positive impact on economic growth. Therefore, the study suggests that the government should implement trade policies and encourage exports and discourage excessive imports. This can help balance the trade deficit and stimulate local manufacturing. Also, government should invest in education and skill development to ensure a highly skilled and adaptable workforce for the manufacturing sector in the country. This would create a Conducive environment for economic growth and development in Nigeria.

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