ABSTRACT
This research evaluated the fiscal policy tool on the manufacturing
sector performance in Nigeria (1981-2019). The data used were annual data which
were sourced from Central
Bank of Nigeria (CBN) Statistical Bulletins 2019 and World Development Indicators
from World Bank collection of development indicators. This research work employed Autoregressive
Distributive Lag (ARDL). The variables employed for this research were Manufacturing Sector Output (MOPT), Total government expenditure (TGXP), Tax Revenue (TXRV), Gross Fixed Capital Formation (GFCF), and
Inflation (INFR).
The result from the analysis shows that total government expenditure had a positive relationship
with manufacturing sector performance (LMOPT) increasing it significantly by 0.744886 units
at 5% level of significance, there also exist a negative relationship with
manufacturing sector output (LMOPT) in the long run, decreasing it
significantly by -0.503165 units at 5% level of
significance
, the gross fixed capital formation had a positive relationship
with manufacturing sector output (LMOPT) in the long run increasing and was
significant by 0.823863 units at 5% level of significance, the study further shows
that inflation
rate (INFR) had a positive relationship with manufacturing sector output
(LMOPT) increasing it significantly by 0.007812 units at 5% level of
significance.
This study recommends fiscal
policy initiatives must be redirected to make Nigeria a producer nation through
the manufacturing sector, which will contribute to economic growth and
development, Government should spend more
on the factors that will encourage manufacturing sector and make a policy that
will implement the expenditures rather than siphoning the funds. And the
expenditure should be mainly on capital factor that has a significant effect on
manufacturing sector performance.
MICHAEL, U (2023). Fiscal Policy Tools On Manufacturing Sector Performance In Nigeria . Mouau.afribary.org: Retrieved Oct 09, 2024, from https://repository.mouau.edu.ng/work/view/fiscal-policy-tools-on-manufacturing-sector-performance-in-nigeria-7-2
UNIVERSITY, MICHAEL. "Fiscal Policy Tools On Manufacturing Sector Performance In Nigeria " Mouau.afribary.org. Mouau.afribary.org, 22 Jun. 2023, https://repository.mouau.edu.ng/work/view/fiscal-policy-tools-on-manufacturing-sector-performance-in-nigeria-7-2. Accessed 09 Oct. 2024.
UNIVERSITY, MICHAEL. "Fiscal Policy Tools On Manufacturing Sector Performance In Nigeria ". Mouau.afribary.org, Mouau.afribary.org, 22 Jun. 2023. Web. 09 Oct. 2024. < https://repository.mouau.edu.ng/work/view/fiscal-policy-tools-on-manufacturing-sector-performance-in-nigeria-7-2 >.
UNIVERSITY, MICHAEL. "Fiscal Policy Tools On Manufacturing Sector Performance In Nigeria " Mouau.afribary.org (2023). Accessed 09 Oct. 2024. https://repository.mouau.edu.ng/work/view/fiscal-policy-tools-on-manufacturing-sector-performance-in-nigeria-7-2