IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0753.html
   My bibliography  Save this article

The Impact of Economic Liberalization Policy on Performance of the Nigerian Industrial Sector - L’impatto della politica di liberalizzazione economica sulla performance del settore industriale in Nige

Author

Listed:
  • Tamarauntari M. Karimo

    (Niger Delta University, Economics Department)

Abstract

This study examined the impact of economic liberalization policy on performance of the Nigerian industrial sector. Annual data were sourced from the Central Bank of Nigeria Statistical Bulletin and Annual Reports and interpolated to quarterly data. The variables of interest were index of aggregate industrial production, manufacturing production, mining and quarrying production, electricity consumption, energy consumption, population growth, trade openness, financial deepening, and liberalization dummy variable. Unit root test results showed that although some of the variables were trend stationary they all became stationary after differencing once, I(1). The Engel – Granger test results showed the existence of a meaningful long-run relationship among the variables. The empirical results showed that the impact of economic liberalization policy on performance of the Nigerian manufacturing, mining and quarrying, and power subsectors and the aggregate industrial sector is mixed and statistically significant. Periods with economic liberalization policy, 1986Q3-2012Q4 performed differently from periods before economic liberalization policy. The study concluded that the policy change that took place in 1986Q3 and continuous government efforts to further open the economy to the rest of the world has significantly shaped the Nigerian industrial landscape but much is still needed to be done for Nigeria to benefit from the ongoing liberalization process. The study recommends that government should invest heavily on human capital development as a precursor to benefiting from the ongoing economic liberalization policy. - Questo studio esamina l’impatto sul settore industriale nigeriano della politica di liberalizzazione economica. Sono stati utilizzati dati annuali, forniti dal Bollettino statistico e dal Rapporto annuale della Banca Centrale nigeriana, poi incrociati con dati trimestrali. Le variabili prese in considerazione sono l’indice della produzione industriale aggregata, la produzione del settore manifatturiero, la produzione del settore minerario ed estrattivo, i consumi elettrici, i consumi energetici, la crescita demografica, l’apertura del commercio, la profondità finanziaria e la liberalizzazione. I test a radice unitaria hanno mostrato che sebbene alcune variabili fossero tendenzialmente stazionarie, tutte lo sono diventate dopo la differenziazione di I(1). I test di Engel e Granger hanno evidenziato l’esistenza di una significativa relazione di lungo periodo tra le variabili. I risultati empirici hanno mostrato che l’impatto della politica di liberalizzazione economica sull’andamento del settore manifatturiero, minerario ed estrattivo, dei sotto-settori energetici e del settore industriale aggregato è variegato ma statisticamente significativo. Nei periodi di liberalizzazione economica, terzo trimestre 1986/quarto trimestre 2012, l’andamento dell’economia è stato diverso da quello realizzatosi prima di queste politiche. Lo studio conclude che i cambiamenti di politica economica che hanno avuto luogo nel terzo trimestre del 1986 e i continui sforzi del governo per aprire ulteriormente l’economia della Nigeria al resto del mondo hanno avuto una certa influenza sulla struttura del settore industriale, anche se occorre ancora fare molto affinché il paese tragga consistenti benefici dal processo di liberalizzazione in corso. L’indicazione emergente da questo studio è che risulta necessario investire ancora fortemente sullo sviluppo del capitale umano affinché si possa beneficiare delle politiche di liberalizzazione del paese.

Suggested Citation

  • Tamarauntari M. Karimo, 2015. "The Impact of Economic Liberalization Policy on Performance of the Nigerian Industrial Sector - L’impatto della politica di liberalizzazione economica sulla performance del settore industriale in Nige," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 68(2), pages 229-257.
  • Handle: RePEc:ris:ecoint:0753
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/KARIMO%20229_257.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. AfDB AfDB, . "AfDB Group Annual Report 2011 (Portuguese)," Annual Report, African Development Bank, number 393.
    2. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11845, April.
    3. L Alan Winters, 2004. "Trade Liberalisation and Economic Performance: An Overview," Economic Journal, Royal Economic Society, vol. 114(493), pages 4-21, February.
    4. repec:idb:brikps:65758 is not listed on IDEAS
    5. repec:aer:wpaper:126 is not listed on IDEAS
    6. Tomola M. Obamuyi & Sola Olorunfemi, 2011. "Financial reforms, interest rate behaviour and economic growth in Nigeria," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 1(4), pages 1-2.
    7. repec:aer:wpaper:112 is not listed on IDEAS
    8. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11846, April.
    9. AfDB AfDB, . "AfDB Group Annual Report 2011," Annual Report, African Development Bank, number 392.
    10. Dejene Mamo Bekana, 2011. "Economic Liberalization as Development Policy: the Contemporary Debate," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 3-23, June.
    11. Saibu M O, 2011. "Sectoral Output Responses to Trade Openness, Oil Price and Policy Shocks in Nigeria: A CVAR Approach," Journal of Social and Development Sciences, AMH International, vol. 1(2), pages 48-59.
    12. repec:idb:brikps:78877 is not listed on IDEAS
    13. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11844, April.
    14. AfDB AfDB, . "AfDB Group Annual Report 2011 (Arabic)," Annual Report, African Development Bank, number 394.
    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. Thilakaweera, Bolanda Hewa & Harvie, Charles & Arjomandi, Amir, 2016. "Branch expansion and banking efficiency in Sri Lanka’s post‐conflict era," Journal of Asian Economics, Elsevier, vol. 47(C), pages 45-57.
    2. Jaber, J.O. & Elkarmi, Fawwaz & Alasis, Emil & Kostas, Anagnostopoulos, 2015. "Employment of renewable energy in Jordan: Current status, SWOT and problem analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 490-499.
    3. Rachel Wolfgramm & Sian Flynn-Coleman & Denise Conroy, 2015. "Dynamic Interactions of Agency in Leadership (DIAL): An Integrative Framework for Analysing Agency in Sustainability Leadership," Journal of Business Ethics, Springer, vol. 126(4), pages 649-662, February.
    4. Guido de Blasio & Stefania De Mitri & Alessio D'Ignazio & Paolo Finaldi Russo & Lavina Stoppani, 2017. "Public guarantees on loans to SMEs: an RDD evaluation," Temi di discussione (Economic working papers) 1111, Bank of Italy, Economic Research and International Relations Area.
    5. Stephen P. D’Alessandro & Jorge Caballero & John Lichte & Simon Simpkin, 2015. "Kenya," World Bank Publications - Reports 23350, The World Bank Group.
    6. Chileshe Ng’andu Musaba & Emmanuel C. Musaba & Simon I.R. Hoabeb, 2014. "Employee Perceptions of Service Quality in the Namibian Hotel Industry: A SERVQUAL Approach," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(4), pages 533-543, April.
    7. Mukherjee, Swayambhu & Kar, Saibal, 2020. "Leveraging Non-Farm Income: Micro-evidence of Occupational Choice for Rural Households in India," MPRA Paper 109940, University Library of Munich, Germany.
    8. Legovini, Arianna & Di Maro, Vincenzo & Piza, Caio, 2015. "Impact evaluation helps deliver development projects," Policy Research Working Paper Series 7157, The World Bank.
    9. Ochia, Stevenson Enemuwa (Doctorial Student) & Bobmanuel, Karibi Benson PhD & Umunnah, Blessing Onyinyechukwu PhD, 2022. "Port Harcourt Residents’ Perception of Energyplatform Programme on Nigeria Info 92.3FM," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 794-802, December.
    10. Le Breton, Michel & Thomas, Alban & Zaporozhets, Vera, 2012. "Bargaining in River Basin Committees: Rules Versus Discretion," LERNA Working Papers 12.12.369, LERNA, University of Toulouse.
    11. Griffith, Andrew P. & Haque, Mohua & Epplin, Francis M., 2014. "Cost to produce and deliver cellulosic feedstock to a biorefinery: Switchgrass and forage sorghum," Applied Energy, Elsevier, vol. 127(C), pages 44-54.
    12. Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin & Yazar, Attila, 2014. "The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey," World Development, Elsevier, vol. 64(C), pages 815-827.
    13. Lührmann, Melanie & Serra-Garcia, Marta & Winter, Joachim, 2015. "Teaching teenagers in finance: Does it work?," Journal of Banking & Finance, Elsevier, vol. 54(C), pages 160-174.
    14. Kent Matthews, 2014. "Cost Inefficiency in the Pakistan Banking Sector 2002-2009," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 10, pages 1-20.
    15. Samuel Egyakwa Ankomah & Adam Fusheini & Christy Ballard & Emmanuel Kumah & Gagan Gurung & Sarah Derrett, 2021. "Patient–public engagement interventions for health system improvement in Sub‐Saharan Africa: A systematic scoping review protocol," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(2), pages 273-281, March.
    16. Josef Brechler & Vaclav Hausenblas & Zlatuse Komarkova & Miroslav Plasil, 2014. "Similarity and Clustering of Banks: Application to the Credit Exposures of the Czech Banking Sector," Research and Policy Notes 2014/04, Czech National Bank, Research and Statistics Department.
    17. Humberto Brea-Solis & Sergio Perelman & David Saal, 2017. "Regulatory incentives to water losses reduction: the case of England and Wales," Journal of Productivity Analysis, Springer, vol. 47(3), pages 259-276, June.
    18. Ayaz Hussain & Umar Draz & Tariq Ali & Saman Tariq & Muhammad Irfan & Adam Glowacz & Jose Alfonso Antonino Daviu & Sana Yasin & Saifur Rahman, 2020. "Waste Management and Prediction of Air Pollutants Using IoT and Machine Learning Approach," Energies, MDPI, vol. 13(15), pages 1-22, August.
    19. Da Mata, Daniel & Resende, Guilherme, 2020. "Changing the climate for banking: The economic effects of credit in a climate-vulnerable area," Journal of Development Economics, Elsevier, vol. 146(C).
    20. Rahab Wanjiru Waihenya & Prof. Peter Kithae, 2022. "Mobile Banking Services and Performance of Informal Businesses in Nairobi, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 50-58, October.

    More about this item

    Keywords

    Economic Liberalization; Industrial Sector; Nigeria; Performance;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    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:ris:ecoint:0753. 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: Angela Procopio (email available below). General contact details of provider: https://edirc.repec.org/data/cacogit.html .

    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.