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Role of Manufacturing Sub-Sector and Export in Determining Economic Growth in Nigeria

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– Role of Manufacturing Sub-Sector and Export in Determining Economic Growth in Nigeria –

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Abstract

The study examines long run relationship between economic growth,   manufacturing output and export in Nigeria. What short run impact does manufacturing output and export have on economic growth in Nigeria from 1981 and 2016.

The study hypothesized the interplay of some economic variables including Gross domestic product, Manufacturing output, Export, Inflation, Labour force and credit to private sectors.

Owing to the fact that Nigeria economy has been marred by periodic booms and recession as reflected in her unsteady and unsustainable economic growth rate.

The study in view of role of manufacturing sub-sector and export in determining economic growth in Nigeria aim to investigate whether these factors are significant and if they are significant it means that the variables have a positive impact on economic growth in Nigeria.

Introduction

1.1 Background of the Study

According to Zulily (2014), economic growth refers to an increase in the output that an economy produces over a period of time. The achievement of economic growth is an important macroeconomic objective in all countries whether developed or developing.

Rapid industrial development has been the main focus of economic growth because of its potential benefits. Adegbie and Adeniji (2014) opined that manufacturing and industrialization tends to propel economic growth and quicken the achievement of structural transformation and diversification of economies.

According to Central Bank of Nigeria, before independence in 1960, the Nigerian economy was mainly agrarian both in production for domestic consumption and exports. Early manufacturing activities predating independence were limited to semi-processing of primary agricultural products as adjuncts to the trading activities of foreign companies.

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