Manufacturing Sector Output Determinants And Manufacturing Sector Performance In Nigeria

Abstract

The study investigated the determinants of manufacturing sector output and manufacturing sector performance in Nigeria for the period 1981-2021 as the scope of the study. The OLS estimation technique was used to estimate empirical results, while E-views 12 statistical software was employed in computing the results. Time series data were obtained from World Development Indicators (WDI) and CBN Statistical Bulletin 2021. Results showed that the labour force had a positive and significant relationship with manufacturing sector output in Nigeria; Government expenditure had a positive and significant relationship with manufacturing sector output in Nigeria; Gross fixed capital formation had a positive and significant relationship with manufacturing sector output in Nigeria; Average manufacturing capacity utilization had a positive and significant relationship with manufacturing sector outputs in Nigeria while Lending interest rate had a negative and significant relationship with manufacturing sector output in Nigeria. Based on these findings, the study recommended, among others, that Government investment be encouraged, which forms capital formation and accumulation, while initiatives outside providing infrastructures and paying salaries should be welcomed.

KEYWORDS: Manufacturing Sector Output, Manufacturing Performance, Government Expenditure, Gross Capital Formation, Labour Force.