ASSESSMENT OF THE INDUSTRIAL SECTOR POTENTIALS AND ECONOMIC GROWTH NEXUS IN NIGERIA
Ehigocho Peace Aimua and Ogba Likita J.
Volume 7 Issue 1
Abstract
The study assessed the potentials of industrial sector in stimulating economic growth in Nigeria, through identifying the various raw materials, physical capital, and human capital necessary and available in the six (6) geo-political zones in Nigeria for the growth of the industrial sector. The study adopted the Co-integration and error correction model technique, the result showed that all the determinants of industrial development (foreign direct investment, labour, and electricity supply, bank credit to the industrial sector, exchange rate, and inflation rate) have significant effect on the performance of the industrial output. Both labour and electricity supply have significant impact, exchange rate showed a positive and significant impact indicating that currency appreciation might be inimical to the growth of the industrial sector. All variables where subjected to unit root test to test for stationarity. The study concluded that Nigeria should utilise its enormous amount of opportunities and resources (infrastructural, human and capital) to become an industrialised nation, while government need to make favourable policy to attract investors.
Download Paper