1st African International Conference on Industrial Engineering and Operations Management

The Effects of Manufacturing and Service Sectors on Economic Growth in Nigeria

jesusetemi oluwafemi, IFETAYO OLUWAFEMI & Pule Kholopane
Publisher: IEOM Society International
0 Paper Citations
Track: Business Management

The manufacturing and service sectors are the most dominant sectors that propelled the rapid growth and development of many industrialized nations. They are regarded as the engine of growth. However, their performances have remained largely slow in Nigeria. Therefore, the research investigated the influence of the manufacturing and service sectors on Nigeria’s economic growth and development in the period under review. The methodology employed to test the levels of stationarity of the variables is the Augmented Dickey-Fuller, while the dependent variable proxied by GDP and that of the independent variables are manufacturing sector, value added, service sector, value added, government expenditure and consumer price index. The obtained results indicated all variables are of order one. Also, the study found the existence of a long run relationship existing among the variables of manufacturing and service sectors which are positive and significant meaning that as the manufacturing and service sectors grow, the economy also grows rapidly. The recommendations of the study among other things are that the central authorities should, therefore, endeavor to massively invest and boost the infrastructural needs of the manufacturing and service sectors of the economy to further enhance the economic growth potentials of the economy.

Keywords: Economic growth, Manufacturing, Relationship, Service sectors. JEL Classification: L67, L80, Q48

Published in: 1st African International Conference on Industrial Engineering and Operations Management, Johannesburg, South Africa

Publisher: IEOM Society International
Date of Conference: October 30-1, 2018

ISBN: 978-1-5323-5947-7
ISSN/E-ISSN: 2169-8767