Domestic Macroeconomic Drivers of Industrialization in Nigeria: Status and Prospects From the Manufacturing Sub-Sector

ECRTD - International Journal of Development and Economic Sustainability, 7(1), 23-36.

15 Pages Posted: 7 Feb 2019

See all articles by Ebele Nwokoye

Ebele Nwokoye

Nnamdi Azikiwe University - Department of Economics

clement Izuchukwu Igbanugo

Nnamdi Azikiwe University - Department of Statistics

Stephen Kelechi Dimnwobi

Nnamdi Azikiwe University - Department of Economics

Date Written: January 01, 2019

Abstract

While most advanced economies are in the process of industrializing their economies, plots by successive governments to transform the economy Nigerian, from a commodity-driven to an industrialized one, has not yielded much fruits despite several industrial policies and reforms. Based on the United Nations/World Bank success yardsticks with theoretical framework rooted on the Prebisch-Singer Hypothesis and the endogenous growth model, this study utilized K-class estimation procedure on Nigeria’s time series between 1990 and 2016. The result obtained indicates that infrastructural development, institutional framework, bank credit, foreign direct investment, electricity, stable exchange rate, low inflation and economic diversification are key drivers of industrialization. The findings also confirm that except the Nigerian economy achieves improved infrastructure delivery and institutional framework as well as stable domestic and currency prices, the efforts towards economic diversification agenda may be counterproductive. It is therefore expedient that Nigeria focuses on building strong macroeconomic fundamental that would accentuate its take-off to industrialization.

Keywords: Diversification, Gross Domestic Product, Industrialization, Macroeconomy, Manufacturing, Nigeria

JEL Classification: E24, O14, O11, L6, N67

Suggested Citation

Nwokoye (nee Nwabude), Ebele and Igbanugo, clement Izuchukwu and Dimnwobi, Stephen Kelechi, Domestic Macroeconomic Drivers of Industrialization in Nigeria: Status and Prospects From the Manufacturing Sub-Sector (January 01, 2019). ECRTD - International Journal of Development and Economic Sustainability, 7(1), 23-36.. Available at SSRN: https://ssrn.com/abstract=3321160

Ebele Nwokoye (nee Nwabude) (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

HOME PAGE: http://www.unizik.edu.ng/profile/nwokoyees

Clement Izuchukwu Igbanugo

Nnamdi Azikiwe University - Department of Statistics ( email )

Department of Statistics
Nnamdi Azikiiwe University
Awka, Anambra 123
Nigeria

Stephen Kelechi Dimnwobi

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

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