The Determinants of Manufacturing Sector Growth Performance in Nigeria, 1972-2002
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This paper explores the determinants of growth performance in the Nigerian manufacturing Industry during the period 1972 to 2002. The econometric evidence confirms that index of openness, exchange rate deregulation policy, domestic capital formation are positively related to manufacturing growth performance. The findings show that domestic capital formation is very significant in explaining variations In manufacturing value added. Expectedly inflation rate has a negative effect on manufacturing productivity. Contrary to a priori expectation, the manufacturing capacity utilisation and real per capita income have a Significant negative impact on the growth performance of the manufacturing sector. The findings show that political stability is a significant variable in explaining manufacturing output expansion. The policy Implication of the findinqsis that, improving capacity utilisation in the manufacturing sector, reducing inflation rate and ensuring stable macroeconomic environment as well as guided exchange rate and deregulation policy are crucial options that have to be adopted for manufacturing sector growth to be enhanced. It is noteworthy that policy reforms to enhance the process of domestic capital formation should be introduced as a means of promoting manufacturing sector growth performance in Nigeria.
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Manufacturing Industry , Domestic Capital Formation
Dauda, R.O.S (2006) The Determinants of Manufacturing Sector Growth Performance in Nigeria, 1972-2002. Journal of Economics and Social Studies, volume 5