The Impact of Manufacturing on Economic Growth in Nigeria: An Autoregressive Distributed Lag Model Approach

International Journal of Economics and Management Studies

© 2018 by SSRG - IJEMS Journal

Volume 5 Issue 8

Year of Publication : 2018

Authors : Dogara Egbiku Joshua

10.14445/23939125/IJEMS-V5I8P103

How to Cite?

Dogara Egbiku Joshua, "The Impact of Manufacturing on Economic Growth in Nigeria: An Autoregressive Distributed Lag Model Approach," SSRG International Journal of Economics and Management Studies, vol. 5,  no. 8, pp. 14-20, 2018. Crossref, https://doi.org/10.14445/23939125/IJEMS-V5I8P103

Abstract:

The manufacturing sector has been considered as being pivotal to the achievement of economic growth and development in any economy. The several policies and programmes adopted at one point or the other in order to achieve industrial development in Nigeria underscore this fact. Due to weak manufacturing base the country still grapples with Economic and social issues ranging from dwindling growth rates and low human development indices. This research investigates the impact of manufacturing on Economic growth with particular reference to Nigeria. The research uses the Autoregressive Distributed Lag (ARDL) model to examine the impact of manufacturing on economic growth using time series data spanning the period of 1981-2015. The Bounds testing result reveals that manufacturing has a long run positive impact on economic growth and development. One of the recommendations of the study is that government should make adequate foreign exchange available to manufacturers to acquire raw materials for production. Another recommendation was that government should sustain the ban on this list of imported manufactured products to induce patronage of locally manufactured products. Increase in the percentage of credit facilities reserved for local manufacturers is also recommended by the study.

Keywords:

Manufacturing, Economic Growth

References:

[1] Adedipe, B. (2007): Manufacturing: Way out of the Precipice. Zenith Economic Quaterly.2 (12), 33-41.
[2] Akinlo, E. A. (1996). Improving the Performance of the Nigerian Manufacturing: Selected Issues and Proposals. The Nigerian Journal of Economic and Social Studies. 38(2), 91-110. 
[3] Central Bank of Nigeria (2015): Statistical Bulletin. Retrieved from www.cbn.gov.ng/documents/statbulletin.asp. 
[4] Elhiraika, B (2008, November), Promoting manufacturing to accelerate economic growth and reduce volatility in Africa. Paper presented at the African Economic Conference on Globalization, Institutions and Economic Development of Africa.Tunis, Tunisia. 
[5] Enebeli-Uzor, S. (2009). Economic Meltdown: The Realities for the Manufacturing Sector. Zenith Economic Quaterly.4 (2), 38-44 
[6] Enebeli-Uzor, S. (2012). Recent Trends in Nigeria‟s Manufacturing Sector: Cause for Optimism? Zenith Economic Quaterly.8 (4), 49-55. 
[7] Giles, D. (2013). ARDL Models-Part II-Bounds Test. Retrieved from http://davegiles.blogspot.com.ng/2013/06/ardl-models-part-ii-bounds-tests.html 
[8] Guo, D., Dall‟erba, S. & Le Gallo, J (2012). The Leading Role of Manufacturing in China‟s Regional Economic Growth: A Spatial Econometric Approach of Kaldor‟s Laws. International Regional Science Review 36(2), 139 – 166. doi: 10.1177/0160017612457779 
[9] Jhingan, M. L (2011). Economics of Development and Planning, New Delhi: Vrinda Publication. 
[10] Libanio, G & Moro, S. (2006). Manufacturing Industries and Economic Growth in Latin America: A Kaldorian Approach. Research Gate. Retrieved from https://www.researchgate.net/publication/255652796 
[11] Ministry of Budget and National Planning (2009): Report of Vision 20:2020 National Working Group on Manufacturing Thematic Area. Nigeria: Author www.nationalplanning.gov.ng. 
[12] National Planning Commission, (2009). Nigeria Vision 20:2020 Economic Transformation Blue print. Abuja, Nigeria: Author. 
[13] NBS, (2016). Nigerian Poverty Profile. Abuja: Author. 
[14] Obioma, B. K., Anyawu, U. N., & Kalu, A.O.U (2015). The Effect of Industrial Development on Economic Growth Empirical Evidence in Nigeria 1973-2013. European Journal of Business and Social Sciences, 4(2), 127 – 140. Retrieved from http://www.ejbss.com/recent.aspx 
[15] Pesaran, M. H., Shin, Y. and Smith, R. J., (2001). Bounds Testing Approaches to the Analysis of level relationships. Journal of Applied Econometrics, 16, 289–326. DOI: 10.1002/jae.616. 
[16] Soniyi, T (2017, January, 24). Manufacturers List Challenges to Economic Growth. ThisDay. Retrieved from http/www.thisdaylive.com/index.php/2017/01/24/manufacturers-list-challenges-to-economic-growth 
[17] Todaro, M. & Smith, S (2012). Economic Development 11th ed. Boston: Pearson. Education. 
[18] UNDP (2016). Human Development Report: Nigeria. Retrieved from hdr.undp.org/en/countries/profiles/NGA 
[19] World Bank, (2016 a). Nigerian Overview. Retrieved from http://www.worldbank.org/en/webarchives/archive?url=http%3A%2F%2Fwww.worldbank.org%2Fen%2Fcountry
%2Fnigeria%2Foverview%232 
[20] World Bank. (2016 b), World Development Indicators Database. Retrieved from 
http://data.worldbank.org/data-cataloq/world-development -indicators