Industrial Sector Growth and Economic Performance in Nigeria


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– Industrial Sector Growth and Economic Performance in Nigeria  –

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This research work set out to investigate industrial sector growth and economic performance in Nigeria. The study employed multiple regression models and Granger causality model using secondary data from 1981 to 2015.

Results show that the coefficient of crude petroleum and natural gas, solid mineral variables and manufacturing sub-sector growth are positive and statistically significant.

From the Granger causality result, bidirectional causality does not exist between economic growth and industrial sector performance in Nigeria.

However, there is a unidirectional causal relationship between industrial sector performance and economic growth at lag 4 and lag 6.

However, there is no significant structural break in economic growth especially between military and democratic rules in Nigeria. Also, the Engle-Granger cointegration suggests that there is a long-run relationship.


1.1 Background of the Study

The critical role of the industrial sector is predicated on the fact that it acts as an engine of growth bybroadening the productive and export base of the economy, reducing unemployment and stemming rural-urbandrift as well as helping to reduce poverty, (Umoro and Eborieme, 2013).

Nigeria is an open economy. Accordingly, developments ininternational circles have profound implications on the path the country is going in terms of the development ofher industrial sector. It has been the goal of trading with countries to obtain improved and more secureaccess to markets abroad.

This is intended to provide the country with the opportunity to explore economies ofscale beyond the limit of the domestic market and facilitate access to foreign exchange with which to financecritical imports needed for development (Adenikinju 2002).

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