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Manufacturing Performance in Nigeria: Implication for Sustainable Development

Author

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  • Olorunfemi Sola
  • Tomola M Obamuyi
  • Felix O Adekunjo
  • E.O Ogunleye

Abstract

The study examined manufacturing performance for sustainable economic development in Nigeria, while the specific objectives are as follows: i) to look at the growth rate and contribution of manufacturing to GDP. ii) to examine trend in both manufacturing and employment. iii) to determine the structure of capacity utilization. iv) to determine factors influencing manufacturing performance. Panel data analysis was used on secondary data from 1980-2008 that was extracted from CBN Statistical Bulletin. The results indicate positive relationship between manufacturing and each of capacity utilization and import as 1 percent change in capacity utilization and import lead to 43081 and 3.8 percent change in manufacturing respectively. However, there is a negative relationship between manufacturing and each of investment, exchange rate, and export. A 1 percent change in investment, exchange rate and export lead to 0.04, 12729, 0.3 percent reduction in manufacturing respectively. The t-values for investment, capacity utilization and import were used to test the hypothesis that each coefficient is different from 0. This is rejected; since the t-value are lower than 1.96 (at 95% confidence level). This showed that investment, capacity utilization and import were major determinants of manufacturing performance for the period. The study concludes that the key to reversing the poor performance of Nigerian manufacturing is to provide incentives for firms to become more export oriented.

Suggested Citation

  • Olorunfemi Sola & Tomola M Obamuyi & Felix O Adekunjo & E.O Ogunleye, 2013. "Manufacturing Performance in Nigeria: Implication for Sustainable Development," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(9), pages 1195-1213.
    • Handle: RePEc:asi:aeafrj:v:3:y:2013:i:9:p:1195-1213:id:1080
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    Citations

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    Cited by:

    1. MESAGAN Ekundayo & OLUNKWA Ndubuisi & YUSUF Ismaila, 2018. "Financial Development And Manufacturing Performance: The Nigerian Case," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 97-111, December.
    2. Abimbola Makanjuola – Agbola & Assoc. Prof. Abayomi Awujola & Dr. Obumneke Ezie, 2023. "Effect of Selected Macroeconomic Variables on Oil Refining Industry Output in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 1082-1095, November.
    3. Falade Abidemi Olufemi Olusegun, 2021. "Determinants and Sustainability of Manufacturing Sector Performance in Nigeria: The Roles of Selected Macroeconomic Variables," Applied Finance and Accounting, Redfame publishing, vol. 7(2), pages 31-40, December.
    4. Sheng, Jichuan & Qiu, Wenge, 2022. "Water-use technical efficiency and income: Evidence from China's South-North Water Transfer Project," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    5. Caner Demir & Suleyman Emre Ozcan, 2023. "The Asymmetric Relationship Among Industrial Production, Capacity Utilization Rate, and Producer Prices in Türkiye: The Nonlinear ARDL Model Approach," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 525-543, July.
    6. A. Sankaran & A. Vadivel & M. Abdul Jamal, 2020. "Effects of dynamic variables on industrial output in one of the world’s fastest-growing countries: case evidence from India," Future Business Journal, Springer, vol. 6(1), pages 1-8, December.
    7. Lu Lin Zhou & James Onuche Ayegba & Emmanuel Onu Ayegba & Peace Maina Ayegba & Zhang Xin Jie, 2021. "Impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-24, December.
    8. Falade Olanipekun Emmanuel & Olagbaju Ifeolu Oladiran, 2015. "Effect of Government Capital Expenditure on Manufacturing Sector Output in Nigeria," Business and Economic Research, Macrothink Institute, vol. 5(2), pages 136-152, December.
    9. Anthony Orji & Jonathan E. Ogbuabor & Chiamaka Okeke & Onyinye I. Anthony-Orji, 2018. "Another Side of the Coin: Exchange Rate Movements and the Manufacturing Sector in Nigeria," Journal of Infrastructure Development, India Development Foundation, vol. 10(1-2), pages 63-79, June.

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