ABSTRACT

This research work on the manufacturing sector development and importation effect on Nigerian economy examines econometrically the impact of manufacturing sector and importation effect on economic growth in Nigeria using a time series data from the period of 1981 to 2016. It assesses the effect of manufacturing output (mangdp), investment (inv), government expenditure (gov.exp),(imp),importation and money supply (ms) on log of real gross domestic product (lrgdp). Appropriate multiple regression models is specified with parameters, which are estimated using the ordinary least square (OLS) technique. Test of hypothesis is carried out and the result shows in the period under review, manufacturing output has a positive impact on economic growth in Nigeria. However, the impact is statistically insignificant. The study found that imports has a positive and statistically significant impact on economic growth in Nigeria .Government expenditure and money supply has no statistically significant impact on economic growth in Nigeria. Finally, the study recommends that more efforts should be geared towards increasing the availability of credits to the manufacturing sector as well as to creating the necessary infrastructure that will allow the sector to thrive.