ABSTRACT
This
research work is geared at evaluating the effectiveness of manufacturing sector
in promoting economic development in Nigeria. This is very essential in the
Nigerian economy is characterized by GDP dependence on manufacturing output. Indices of exchange rate, capacity
utilization, electricity supply and industrial output are hereby studied for
the period of 1985-2007 with respects to the effectiveness of manufacturing
sector in promoting economic development in Nigeria. A simple linear and
multiple regression model was used for this project and criteria were examined.
From the findings of this research work, it was observed that manufacturing
sector constitute an integral part of the industrial base of any nation. They
form the foundation on which the industrial sector of any nation must be built.
It is logical, therefore, to say emphatically, that without a properly
developed manufacturing sector base, there can be no industrialisation of any
sound foundation on which a sustainable economic growth and development could
be based.
TABLE OF CONTENTS
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CHAPTER ONE
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1.1
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Introduction
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1.2
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Statement
of Research Problem
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1.3
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Aim and
Objectives of the Study
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1.4
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Research
Question
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1.5
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Statement
of Hypothesis
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1.6
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Research
Methodology
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1.7
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Significance
of the Study
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1.8
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Scope and
Limitation of the Study
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1.9
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Plan of
the Study
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References
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CHAPTER TWO: Literature
Review
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2.1 Introduction
2.2 Theories and Concept of Manufacturing
Sector
2.3 Importance of Manufacturing Sector
2.4 The Theory of Investment
2.5 Impact of Average Capacity Utilization on
Manufacturing
Sector
2.6 Impact of Trade Policy on Manufacturing
Sector in Nigeria
References
CHAPTER
THREE: The Nigerian Manufacturing Sector
3.1 Introduction
3.2 Structure and Performance of the Nigerian
Economy
3.3 Development Plan
3.4 Performance
and Structure of the Nigerian Manufacturing Sector
3.5 The
Structural and Institutional Constraint of the Manufacturing Sector in Nigeria
3.6 Problems
of the Manufacturing Sector in Nigeria 38 3.7 Solution to Problems of
Manufacturing Sector in Nigeria
References
CHAPTER
FOUR: Research Methodology, Data Presentation and Analysis
4.1 Introduction
4.2 Research Questions
4.3 Collection of Data
4.4 Method of Data Analysis
4.5 Data Presentation and Analysis
4.5 Model Specification
4.7 Empirical Results
References
CHAPTER
FIVE: Summary, Conclusion and Policy Recommendation
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5.1
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Summary
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5.2
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Conclusion
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5.3
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Recommendations
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Bibliography
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CHAPTER ONE
1.1 INTRODUCTION
The
development of the Nigerian Manufacturing sector has not been fully addressed
and the impact has not been fully felt. Manufacturing sector in Nigeria has
been experiencing a stunted growth and its, contribution to gross domestic
product has remained low. For instance, the manufacturing sector as a whole
remains small, according for only 6.6 percent of GDP in 2000 and 12 percent of
employment (World Bank, 2002). The production indices (using 1990 as a base
year (100) also indicated that while agriculture and services experienced
modest growth from 103.5 and 101.5 to 133.6 and 297.0 between 1991 and 1999
respectively, manufacturing sector recorded a decline from 109.4 to 92.3 in the
same period. It is also sad to mention that capacity utilization in the
manufacturing sector declined from about 70.1% in 1980 to just 44.3 percent in
2002 (CBN 2002).
Moreso, the
study attempts to establish an empirical relationship between manufacturing
sector and other macroeconomic variables. The manufacturing sector is an
integral part of the industrial sector in any economy. The major policies and
measures applied to promote the development and the strategies and the policy
reforms needed to accelerate the pace of industrialization.
Before
independence in 1960, the Nigeria economy was mainly agrarian, both in
production for domestic consumption and exports industrialization was not part
of the colonial economic policy, which was anchored on making the colonial
producers of primary raw materials foreign industries and importers of
manufactured goods. Therefore, the task
of the first indigenous administration set for itself on attaining political
independence was the transformation of the country into a modern industrial
economy.
1.2 STATEMENT OF THE RESEARCH PROBLEM
The early
period of post-independence up till mid-1970s saw a rapid growth of industrial
capacity and output, as the contribution of the manufacturing sector to GDP
rose from 4.8% to 8.2%. This pattern
changed when oil suddenly became of strategic importance to the world economy
through its supply price nexus.
What is the
impact of manufacturing industry on the Nigerian economic development?
What is the
impact of monetary policies on the manufacturing industry in Nigeria?
What is the
impact of trade policy on the development of manufacturing industries in
Nigeria?
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of
this study is to examine the impact of manufacturing sector on the Nigerian
economic development. While objectives
are:
i) To
show the impact of manufacturing industry on the economic development of
Nigerian.
ii) To
determine the impact of monetary policies on the manufacturing industry in
Nigeria?
iii) To
determine the impact of trade policy on the manufacturing industries in
Nigeria.
1.4 RESEARCH
QUESTIONS
The
research questions are- as follows:
·
Is there any relationship between the manufacturing industry and the
Nigerian economic development?
·
Does monetary policies has any impact on the manufacturing industry in
Nigeria?
·
Does the introduction of trade policies improve the development of the
manufacturing sector?
1.5 STATEMENT OF
HYPOTHESIS
In the
course of this study, three main hypotheses are formulated.
Hypothesis
One
Ho: that
there is no relationship between manufacturing industry and
the Nigerian economic development.
Ha: that
there is relationship between manufacturing industry and the
Nigerian economic development.
Hypothesis
Two
Ho: That
monetary policy does not have impact of on the manufacturing industry in
Nigeria?
Ha: That
monetary policy has impact of on the manufacturing industry in Nigeria?
Hypothesis
Three
Ho: That
trade policies does not improve the development of the manufacturing sector in
Nigeria.
Ha: That
trade policies improve the development of the manufacturing sector in Nigeria.
1.6 RESEARCH METHODOLOGY
1.6.1 Collection of Data
Secondary
data are used and are sourced from textbooks, newspapers, brochures, magazines,
CBN annual publications, World Bank debt tables etc.
1.6.2 Method of Analysis
Regression
method is used to established the relationship that exists between the
variables and to test the truthfulness or otherwise of the research hypothesis.
1.6.3 Model
of Specification
This shows
the nature of the relationship between explained and unexplained variables.
Y = βo + β1x1
+ β2x2 + β3x3 + β4x4
+ U
Y = GDP
QM = Manufacturing productive output
XM = Manufacturing export
G = Government loan to manufactured sector
M = Manufactured import
U = Error term
βo,
β1, β2, β3, β4 = Coefficient of the
equation
1.7 SIGNIFICANCE
OF THE STUDY
It is
expected that the findings from this study will expose the impact of the
manufacturing sector on the Nigerian economy and how they tend to promote
economic growth.
It will
also show the trend of the manufacturing sector over the years.
It will
also show how export supply capacity has improved and dependence on imports by
Nigerians has reduced. It will also serve as a guide to the nation economists
and policy makers on how to direct and control the economy in a positive
direction.
1.8 SCOPE AND
LIMITATION OF THE STUDY
The basis
of our research on the impact of the manufacturing sector on the Nigerian
economy will be limited to the manufacturing export.
Despite the
fact that the research is limited on the scope of the
manufactured export of the sector, we are still going to be faced with
difficulties like the variation in the data obtained from different officials
i.e. political data, conversion of such data into a whole since the data were
complied with different base years and irregularities in the process of data
collection in the society pose a big problem for the researcher.
1.9 PLAN OF THE
STUDY
The project
has been divided into five chapters for easy understanding.
Chapter one
consists of introduction, statement of problem, significance of the study, aim
and objectives, research methodology, scope and limitation of the study.
Chapter two
deals with the literature review in which the works of previous authors are
analyzed and this are compared with existing state of knowledge with empirical
finding and the theoretical framework.
Chapter
three is the Structural composition of the study.
Chapter
four look into research methodology, data presentation and analysis.
Chapter
five is a summary of the work, conclusion and Policy recommendation.
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