Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria
Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria

Summary/Abstract: The study evaluated the role of sectoral labour force and the nationalsavings on the manufacturing sector output in Nigeria from 1985 to2019, a period of 35years. Data was sourced from Central Bank OfNigeria (CBN) statistical bulletin various issues up until 2017,National Bureau of Statistics (NBS), and World Development Index(WDI). Data were analyzed using Vector Error Correction Model(VECM). The VECM result revealed that national savings and labourforce have long run positive effect on the manufacturing sectoroutput, while exchange rate and inflation have long-run negativeeffect on the manufacturing sector output. It could be deduced fromthis study that national savings, labour force in the industrial sector,inflation and exchange rate are very critical factors that determine thegrowth and survival of the manufacturing sector. Hence, it wasrecommended that the government look critically to themanufacturing sector and revamp the sector by making credit facilityto the sector, and increase the use of domestic raw materials.

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