CAPITAL MARKET AND MANUFACTURING SECTOR CAPACITY UTILIZATION IN NIGERIA 1990 TO 2022
Alagboso Ezekiel Onyebuchi
Volume 3 Issue 2
Abstract
Developed economies with optimally performing capital market sometimes encounter over capacity utilization of their manufacturing sectors. In developing countries like Nigeria however, there is the prevailing problem of under –utilization of the manufacturing sector. The capital market is germane for the growth rate of manufacturing capacity utilization in all free market economies. However, the role of the capital market in the development of Nigerian manufacturing sector has remained unaddressed and the effect not felt despite several policy tools by the government aimed at improving the manufacturing sector. Hence, the paper seeks to investigate the effect of capital market on manufacturing sector capacity utilization in Nigeria from 1990 to 2022. The Auto regressive distributed lag model method of analysis was adopted in carrying out the analysis. Findings from the paper revealed that market capitalization has a positive effect on the rate of manufacturing capacity utilization, all share index also has a positive effect on the rate of manufacturing capacity utilization while value of traded stocks has a negative on the rate of manufacturing capacity utilization. The study recommended steps aimed at enhancing the sustainability of market capitalization and all share index as both has positive and significant effects on the rate of manufacturing capacity utilization as well as put in place measures to improve on the value of traded assets on the Nigerian Stock Exchange. Keywords: Manufacturing Sector, Capital Market, Econometrics, Growth, All Share Index.
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