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Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria

Author

Listed:
  • Adeyemi Olayiwola Babasanya

    (Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria)

  • Olukayode Emmanuel Maku

    (Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria)

  • Joseph Nwabueze Amaefule

    (Department of Education, Babcock University, Ilisan Remo, Ogun State, Nigeria)

Abstract

The study evaluated the role of sectoral labour force and the national savings on the manufacturing sector output in Nigeria from 1985 to 2019, a period of 35years. Data was sourced from Central Bank Of Nigeria (CBN) statistical bulletin various issues up until 2017, National Bureau of Statistics (NBS), and World Development Index (WDI). Data were analyzed using Vector Error Correction Model (VECM). The VECM result revealed that national savings and labour force have long run positive effect on the manufacturing sector output, while exchange rate and inflation have long-run negative effect on the manufacturing sector output. It could be deduced from this study that national savings, labour force in the industrial sector, inflation and exchange rate are very critical factors that determine the growth and survival of the manufacturing sector. Hence, it was recommended that the government look critically to the manufacturing sector and revamp the sector by making credit facility to the sector, and increase the use of domestic raw materials.

Suggested Citation

  • Adeyemi Olayiwola Babasanya & Olukayode Emmanuel Maku & Joseph Nwabueze Amaefule, 2020. "Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 459-473.
    • Handle: RePEc:vrn:journl:y:2020:i:4:p:459-473
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    References listed on IDEAS

    as
    1. Chor Foon Tang & Soo Y Chua, 2009. "The Savings-Growth Nexus in Malaysia: Evidence from Nonparametric Analysis," The IUP Journal of Financial Economics, IUP Publications, vol. 0(3 & 4), pages 83-94, September.
    2. Ojeyinka, Titus A. & Adegboye, Abiodun A., 2017. "Trade Liberalization and Economic Performance in Nigeria: Evidence from Agricultural and Manufacturing sectors," African Journal of Economic Review, African Journal of Economic Review, vol. 5(3), November.
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    Cited by:

    1. Benjamin Musiita & Leward Jeke, 2023. "Factor Inputs and the Growth of the Manufacturing Sector among the East African Community Member States: Testing the Efficacy of the Extended Neoclassical Growth Hypothesis," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 1-12.

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    More about this item

    Keywords

    Manufacturing output; National savings; inflation; labour force; VECM;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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