IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i12p555-561.html
   My bibliography  Save this article

Manufacturing Sector and Import Dependence in Nigeria

Author

Listed:
  • Unegbu Paul Ikechukwu

    (School of Business Education, Federal College of Education (Technical), Umunze, Anambra State, Nigeria.)

  • Prof. Uche Collins Nwogwugwu

    (Nnamdi AzikiweUniversity Akwa Anambra State, Nigeria)

  • Ebere, S. Nwokoye (Ph.D)

    (Nnamdi AzikiweUniversity Akwa Anambra State, Nigeria)

  • Amaka, G. Metu (Ph.D)

    (Nnamdi AzikiweUniversity Akwa Anambra State, Nigeria)

  • Ndubueze Ezindu (Ph.D)

    (Rhema University Aba Abia State, Nigeria.)

Abstract

This study uses secondary data to examine the relationship between the manufacturing sector and import dependence in Nigeria, paying particular attention to the effects of imported intermediate, capital, and manufactured goods (herein referred to as import dependence) on the performance indicators of the manufacturing sector (such as manufacturing output growth, capacity utilization, value added, employment rate, and export adopted in the study). Error Correction Mechanism (ECM) was used to provide empirical evidence for the relationship between manufacturing sector performance (dependent variable) and import dependence. The study adopted Augmented Dicky-Fuller (ADF) for unit root test analysis, Autoregressive Distributed Lag (ARDL) bounds test for cointegration test analysis, and (independent variable). Evidence of a long-term association between the performance of the manufacturing sector was found by the ARDL bounds cointegration test.It was discovered from the empirical findings among others that only import of capital contributed positively to all indicators of manufacturing sector performance adopted in the study. Based on the findings, the study recommends that government should adopt import substitution strategy and make import only for capital and partially for intermediate goods that cannot be produced domestically, while, the importation of manufacutured goods should be discouraged at all cost in Nigeria. Thus conclude that on the average Nigeria’s manufacturing sector is surrounded with doubting benefits and may not be good enough to set economic growth and developmental platform required in the economy.

Suggested Citation

  • Unegbu Paul Ikechukwu & Prof. Uche Collins Nwogwugwu & Ebere, S. Nwokoye (Ph.D) & Amaka, G. Metu (Ph.D) & Ndubueze Ezindu (Ph.D), 2022. "Manufacturing Sector and Import Dependence in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 555-561, December.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:12:p:555-561
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-12/555-561.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/manufacturing-sector-and-import-dependence-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dulleck, Uwe & Foster, Neil, 2008. "Imported Equipment, Human Capital and Economic Growth in Developing Countries," Economic Analysis and Policy, Elsevier, vol. 38(2), pages 233-250, September.
    2. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    4. Onakoya Adegbemi Babatunde, 2018. "Macroeconomic Dynamics and the Manufacturing Output in Nigeria," Mediterranean Journal of Social Sciences, Sciendo, vol. 9(2), pages 43-54, March.
    5. Knuuttila, Marja & Vatanen, Eero & Niemi, Jyrki & Jansik, Csaba, 2014. "Import Dependency of Food Production," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182950, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiranyakul, Komain, 2011. "Are Thai Manufacturing Exports and Imports of Capital Goods Related?," MPRA Paper 45654, University Library of Munich, Germany.
    2. Muhammad AJMAIR & Khadim HUSSAIN & Sabahat AKRAM & Ambreen ZEB, 2017. "What determines the growth of services sector in Pakistan? A comparison of ARDL bound testing and time varying parametric estimation with general to specific approach," Turkish Economic Review, KSP Journals, vol. 4(3), pages 308-319, September.
    3. Olsson, Olle & Hillring, Bengt, 2014. "The wood fuel market in Denmark – Price development, market efficiency and internationalization," Energy, Elsevier, vol. 78(C), pages 141-148.
    4. Levent, Korap, 2007. "Modeling purchasing power parity using co-integration: evidence from Turkey," MPRA Paper 19584, University Library of Munich, Germany.
    5. Rodrigo Cerda & Alvaro Donoso & Aldo Lema, 2003. "Fundamentos del Tipo de Cambio Real en Chile," Documentos de Trabajo 244, Instituto de Economia. Pontificia Universidad Católica de Chile..
    6. Vo, D.H. & Nguyen, H.M. & Vo, A.T. & McAleer, M.J., 2019. "CO2 Emissions, Energy Consumption and Economic Growth," Econometric Institute Research Papers EI2019-11, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    7. Shahbaz, Muhammad & Song, Malin & Ahmad, Shabbir & Vo, Xuan Vinh, 2022. "Does economic growth stimulate energy consumption? The role of human capital and R&D expenditures in China," Energy Economics, Elsevier, vol. 105(C).
    8. Maswana, Jean-Claude, 2006. "An empirical investigation around the finance-growth puzzle in China with a particular focus on causality and efficiency considerations," MPRA Paper 3946, University Library of Munich, Germany, revised Apr 2006.
    9. Vassilis Monastiriotis & Cigdem Borke Tunali, 2020. "The Sustainability of External Imbalances in the European Periphery," Open Economies Review, Springer, vol. 31(2), pages 273-294, April.
    10. Sholih Nugroho Hadi & Rebecca H. Chung, 2022. "Estimation of Demand for Beef Imports in Indonesia: An Autoregressive Distributed Lag (ARDL) Approach," Agriculture, MDPI, vol. 12(8), pages 1-12, August.
    11. Zamani, Mehrzad, 2007. "Energy consumption and economic activities in Iran," Energy Economics, Elsevier, vol. 29(6), pages 1135-1140, November.
    12. Muhammad Zia Ullah Khan & Muhammad Illyas & Muqqadas Rahman & Chaudhary Abdul Rahman, 2015. "Money Monetization and Economic Growth in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 184-192, April.
    13. Michieka, Nyakundi M. & Gearhart, Richard, 2015. "Oil price fluctuations and employment in Kern County: A Vector Error Correction approach," Energy Policy, Elsevier, vol. 87(C), pages 584-590.
    14. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    15. Xu, Haifeng & Hamori, Shigeyuki, 2012. "Dynamic linkages of stock prices between the BRICs and the United States: Effects of the 2008–09 financial crisis," Journal of Asian Economics, Elsevier, vol. 23(4), pages 344-352.
    16. Titus O. Awokuse, 2003. "Is the export-led growth hypothesis valid for Canada?," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 126-136, February.
    17. Saaed, A.A.J., 2007. "Inflation and Economic Growth in Kuwait: 1985-2005. Evidence from Co-Integration and Error Correction Model," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    18. Zhuo Qiao & Keith Lam, 2011. "Granger causal relations among Greater China stock markets: a nonlinear perspective," Applied Financial Economics, Taylor & Francis Journals, vol. 21(19), pages 1437-1450.
    19. Birendra Bahadur Budha, 2013. "Demand for Money in Nepal: An ARDL Bounds Testing Approach," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 25(1), pages 21-36, April.
    20. Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:12:p:555-561. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.