ABSTRACT

Industrialization in Nigeria has gone through various strategies and policy measures so as to achieve economic growth. Despite the adoption of import substitution strategy, export promotion strategy, local resource utilization, indigenization policies have failed to achieve their objectives. This study tries to investigate the impact of industrialization on economic growth in Nigeria employing certain variables such as growth rate of industrial output and growth rate of agricultural output. This study was done with the Ordinary Least Squares (OLS) method using annual data from 1981 to 2015. The study found out that there is a positive relationship between industrialization and economic growth in Nigeria. Augmented Dickey-Fuller unit root test showed that all variables are stationary at level, more so it was found that there is no long run relationship between the variables. This research supports the neo-classical growth theory, which believes that output growth results from increase in labour, capital and improvement in technology. One of the major findings of this study is that Industrialization is the key factor to achieve economic growth. Among the recommendation of this study, Nigerians should patronize “Made in Nigeria” products.