Manufacturing Subsector and Economic Growth in Nigeria
Chukwuedo S. Oburota *
Department of Economics, University of Calabar, Calabar, Nigeria
Ifere, Eugene Okoi
Department of Economics, Federal University Lafia, Nigeria
*Author to whom correspondence should be addressed.
Abstract
The manufacturing subsector has become increasingly important as the engine and driver of economic growth in both developing and developed economies. This study set out to investigate the relationship between manufacturing output and economic growth. The analysis was conducted using time series data from the period of 1981-2013. To quantify the relationship between manufacturing output and economic growth, an eclectic model consisting of both the Kaldor’s first law of growth and the endogenous growth model was estimated. Findings from the study showed that manufacturing output, capital and technology were the major determinants of economic growth. Results also confirm that quality of institutions and labour force does not exert any impact on economic growth. The study concludes that the provision of capital in the form of financial resources to fund the manufacturing sector will greatly improve manufacturing activities in Nigeria. Furthermore there is the need to improve resource allocation to the field of research and development to promote innovative development such as technology adaptation to boost manufacturing activities within the country.
Keywords: Economic growth, manufacturing output