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Determinants of Manufacturing Sector Performance and Its Contribution To Gross Domestic Product In Nigeria

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  • Kenny S, Victoria

Abstract

The Manufacturing sector is regarded as a very important sector in an economy because of its capacity to foster wide and efficient backward and forward linkages among other sectors of the economy. This study examines the determinants of manufacturing sector performance and its contribution to gross domestic product in Nigeria using a time series data from 1981 to 2015 using Johansen Cointegration and the Vector Error Correction Model. The study found that while labour force, gross fixed capital formation and exchange rate showed a positive long run relationship with the manufacturing value added, the average manufacturing capacity utilisation, lending interest rate and government expenditure showed a long run negative relationship. The study recommends that policies should be geared towards making the exchange rate, lending interest rate and government capital expenditure more favourable and productive in the manufacturing sector.

Suggested Citation

  • Kenny S, Victoria, 2019. "Determinants of Manufacturing Sector Performance and Its Contribution To Gross Domestic Product In Nigeria," MPRA Paper 93293, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93293
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    References listed on IDEAS

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    2. Ibhagui, Oyakhilome, 2019. "Eurozone Real Output and Covered Interest Parity Deviations: Can Stronger Real Output Lessen the Deviations?," MPRA Paper 92305, University Library of Munich, Germany, revised 20 Feb 2019.
    3. Jean L. Erero, 2017. "National minimum wage in South Africa: A Computable General Equilibrium Model Analysis," Working Papers 119, Economic Research Southern Africa.
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    5. Oyakhilome Ibhagui, 2017. "Value and Wealth Creation: Stylized Evidence from Nigeria’s Listed Cement Companies," Africagrowth Agenda, Africagrowth Institute, vol. 14(4), pages 12-17.
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    10. Ibhagui, Oyakhilome, 2019. "Wider Covered Interest Parity Deviations and Lower Stock Returns: Evidence from the Eurozone," MPRA Paper 92363, University Library of Munich, Germany.
    11. Ibhagui, Oyakhilome, 2015. "Development Accounting of Africa’s Largest Economies – Explaining Differences in Income Levels," MPRA Paper 89081, University Library of Munich, Germany.
    12. Ibhagui, Oyakhilome W., 2019. "Does the long-run monetary model hold for Sub-Saharan Africa? A time series and panel-cointegration study," Research in International Business and Finance, Elsevier, vol. 47(C), pages 279-303.
    13. Ibhagui, Oyakhilome, 2018. "The Monetary Model of CIP Deviations," MPRA Paper 89641, University Library of Munich, Germany.
    14. Ibhagui, Oyakhilome, 2018. "Interrelations among cross-currency basis swap spreads: Pre-and post-crisis analysis," MPRA Paper 89024, University Library of Munich, Germany.
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    Cited by:

    1. Mohamed A.M. Sallam, 2021. "Determinants of Growth in Manufacturing Industries: Empirical Evidence from Egypt Using the ARDL Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 137-153.

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    More about this item

    Keywords

    Economy; Manufacturing; Vector Error Correction;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General

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