Analyzing the Drivers of manufacturing sector growth in Sub- Saharan Africa: Evidence from Nigeria

Abstract

This study examines the determinants of manufacturing sector performance in the Nigerian economy from 1990 to 2021. This was aimed at ascertaining how per capita income (PKY), inflation (INF) and gross fixed capital formation (GFKF) has stimulate the manufacturing sector performance in Nigeria. Historical data was collated and estimated employing the Ordinary Least Squares (OLS) technique. The empirical results indicate that both inflation and per capita income exert significant positive impacts on the manufacturing sector performance in Nigeria, gross fixed capita formation did not even though it was positive. On the basis of the findings of this study, the following recommendations are made: The monetary authorities have to regularly review their monetary policy direction to bring inflation lower than it is; Policies that promote more employment and economic stimulus should be pursued to enhance the performance of the manufacturing sector performance; Government should create the appropriate macroeconomic policies by increasing capital investment to make the private sector accumulate more productive capital.

References