The Role of Social and Economic Infrastructure in Manufacturing Sector Performance in Nigeria

Mesagan, Ekundayo P. and Ezeji, Amarachi C. (2016): The Role of Social and Economic Infrastructure in Manufacturing Sector Performance in Nigeria. Published in: Babcock Journal of Economics, Banking and Finance , Vol. 5, (December 2016): pp. 101-119.

Abstract

This study examined the role of economic and social infrastructure in manufacturing sector performance in Nigeria. The main concern of the study was to ascertain the degree of impact of economic and social infrastructure variables on manufacturing sector performances in Nigeria and to know if inflation and lending rates are responsible for the depression in the manufacturing sector. Government expenditures on capital, education and health, as well as electricity generation and consumption, and teledensity, inflation rate and prime lending rate were considered variables of analytical relevance in the paper. The results showed that teledensity had positive impact on manufacturing performance in Nigeria. Also, growth of government capital expenditure and growth of government expenditure on education positively and significantly enhanced the manufacturing value added while growth of government expenditure on health, electricity generation, electricity consumption, inflation rate and prime lending rate had insignificant negative effects on manufacturing value added. Government was therefore encouraged to improve the country’s industrial environment and reduce wasteful spending in government.

• Item Type: MPRA Paper
• Language: English
• Keywords: Manufacturing; Social Infrastructure; Economic Infrastructure; Inflation.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General

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