Impact Of Manufacturing Sector Capacity Utilization On Economic Growth In Nigeria:- Umelo Chinemerem M

Abstract

The objective of this study is to investigate the impact of manufacturing capacity utilization on Nigeria economic proxy by the gross domestic product (GDP). The study further looked at the relation between capacity utilization (CUR), manufacturing productivity index (MPI) and gross domestic product in the period under review. Secondary data were sourcedfrom Central Bank of Nigeria (CBN) Statistical Bulletin and other relevant government agenciesfor the period covered in the study, 1981-2018. The data were analyzed using econometric model with the aid ofE-views 8. The results show that a strong positive and significant relationship exist between economic growth and manufacturing capacity variables used. However, it was recommended that the government should hereby embark on core industrial project to facilitate local supply of raw materials and intermediate products that would bring about the much-needed backward integration in the economy. Improved local sourcing ofraw materials will undoubtedly reduce cost /ofproduction and boost employment generation, thereby making locally manufactured products ’ price competitive, both in the local and international markets. Key Words: manufacturing capacity, economic growth, Nigeria, post-IFRS, GDP, industrial project