On the Manufacturing Sector Performance and Nigeria’s Economic Growth
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Abstract
This study examined the impact of Manufacturing Sector Output on economic growth in Nigeria over the period of 1980 to 2020 with data retrieved from the World Development Indicators. Relying on the Autoregressive Distributive Lag Model (ARDL) and the Error
Correction Model (ECM), the study indicates a significant short run relationship between Manufacturing Sector Output and economic growth in Nigeria. The coefficient of the ECM was correctly signed (that is negative) and statistically significant at conventional level of 5%. The long run estimate indicates that short run disequilibrium are adjusted into a long run equilibrium relationship. The findings of the study reveal that Manufacturing Sector Performance has a positive and significant impact on the economic growth of Nigeria.
However, gross fixed Capital Formation does not have a significant impact on the economic growth of Nigeria. From the findings of the study, it is recommended that the government should prioritize selective investment in manufacturing sector to drive growth and sustainable economic development in Nigeria.
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