Industrial Sector Performance and Economic Growth in Nigeria
No Thumbnail Available
Date
2022-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Lead City University
Abstract
The predictive power of the industrial sub-sector output on economic growth is a topical issue, especially with the outbreak of the COVID-19 pandemic and its effects on global industrial and economic activities. As such, this research study investigates the links between industrial sector performance (proxy by mining and quarrying, manufacturing, electricity, gas, stream and air conditioner, water supply, sewage and waste management, and construction sector) and economic growth measured by real income per capita growth in Nigeria. A secondary dataset from 1981 to 2021 which was sourced from Central Bank of Nigeria Statistical Bulletin and World Development Indicators was used in the study. The study employs the autoregressive distributed lag (ARDL) to investigate the short run and long run estimates. The study discovered that manufacturing sector performance significantly and positively impacted economic growth measured by income per capita both in short and long run. Similarly, mining and quarrying sector performance positively impacted economic growth in the short and long run. Also, the performance of electricity, gas, stream and air conditioner sector only influenced income per capita positively in the short run. Meanwhile, construction and water supply, sewage and waste management sector performance adversely affect short run economic growth in Nigeria. The study concludes that manufacturing sector act as the main industrial sector component that drives the per capita output growth of Nigeria compared to other sub-sectors. Thus, it is imperative to harmonize industrial policies with adequate infrastructural development to drive the industrial sub-sector towards enhancing economic growth in Nigeria.
Keywords: Industrial output, manufacturing, economic growth.
Word counts: 249.
Description
Keywords
Citation
Kate Turabian