Industrial Production and Non-oil Export: Assessing the Long-run Implication on Economic Growth in Nigeria

Emmanuel S. Akpan, Hodo B. Riman, Joe Duke II, Helen Walter Mboto

Abstract


The aim of this paper is to identify the role industrial sector plays in driving the GDP of Nigeria. The paper further seeks to predict the long-run behavioral relationship between industrial production, non-oil exports and economic growth in Nigeria using data from 1970 – 2007. Vector Error Correction Mechanism (VECM) was utilized to establish the co-integrating relationship between industrial production, non-oil exports and GDP. The paper reveals the existence of a positive and significant uni-directional relationship that runs from industrial production to non-oil exports. It was further evident in the study that the current policies on industrial production in Nigerian do not sufficiently encourage non-oil export. The paper therefore predicts an imminent collapse of the Nigerian manufacturing industries in the nearest future if immediate remedial measures are not quickly taken to strengthen the ailing industries. The paper among other things encourages the government to strengthen the legislative and supervisory framework of the Agricultural Credit Guarantee Scheme in Nigeria.


Full Text: PDF DOI: 10.5539/ijef.v4n2p252

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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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