ASSESSMENT OF THE IMPACT OF MANUFACTURING SECTOR ON ECONOMIC GROWTH IN NIGERIA (1980-2015)

Abstract

The importance of manufacturing sector to the growth of any economy and survival cannot be overemphasized. In an attempt to advance on this, this study attempts to investigate the assessment of the impact of manufacturing sector on economic growth in Nigeria from 1980 – 2015, Ordinary Least Square (OLS) econometric technique was used on time series data of relevant variables of manufacturing Output, investment and capacity utilization; The study found that manufacturing output, investment and capacity utilization has a significant relationship with the economy. Meaning that manufacturing output, investment and capacity utilization exerts impact on economic growth via manufacturing sector of the economy. The study recommends that efforts should be geared toward strengthening the macroeconomic, socio-infrastructural and institutional environment of the nation, thus bringing a good linkage between domestic and external institutions with the ultimate aim of properly harnessing funds so mobilized towards productive manufacturing sector of the economy.

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