Impact of Infrastructural Development, Institutional Quality and Industrial Sector Performance in Nigeria
Umaru Musa, Abu Regina Aloho, Aliyu Rilwan Saad, Ndigefa Ernest Johnson Oluwaseum, Adeniran Sunday
Abstract
This study examined the impact of infrastructure, institution on industrial performance in Nigeria. The annual time series data was collected from world development indicator and Central bank of Nigeria respectively, covering 38 years span from 1986 to 2023 were used. The expost factor research design was used for this work. The study employed the econometric estimation technique of Autoregressive Distribution Lag (ARDL) model was used for the analysis, adopting annual data method of analysis. The findings from the result estimated, all explanatory variables were consistent with a prior expectation. This implies that a unit increase real interest rate (RINT), inflation (INFL), and employment (EMPL), will lead to decrease in industrial performance by about 0.2588, 0.07145, and 0.24175. Also, the result show that a one percent increase in the log of foreign direct investment foreign direct investment result to about 1.56 increase in an industrial performance ceteris paribus. The study indicated that the study recommended that the government should intensify efforts towards creating a conducive and friendly environment for investors and combat the level of insecurity to attract the foreign direct investor into economic.
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