ANALYSIS OF THE NIGERIAN MANUFACTURING SECTOR PERFORMANCE UNDER TRADE GLOBALIZATION
ANALYSIS OF THE NIGERIAN MANUFACTURING SECTOR PERFORMANCE UNDER TRADE GLOBALIZATION

Summary/Abstract: The paper analysed the Nigerian manufacturing sector performance under trade globalization. In line with the objectives of the study, secondary data covering the period 1986 – 2018 were obtained from the Central Bank of Nigeria Statistical Bulletin and was used to analysed the relationship between Manufacturing Sector Output as the dependent variable and Degree of Openness, Foreign Exchange Rate, Gross Capital Formation and Interest Rate as the independent variables. The Unit Root Test was employed to ascertain the level of stationarity of the variables. The Auto Regressive Distributed Lag Bound Test for Cointegration was also employed while the Short-run Dynamic ARDL Model was conducted to check the speed of adjustment. Based on our findings, the study recommends that for an improvement in the output of manufacturing sector in Nigeria, there is a need to match the embracement of innovation and modern manufacturing processes with action so as to improve the capacity to produce and make the sector producers of goods and services for both local and international use. There is also the need to encourage investment in the sector through the promotion of positive trade openness of the economy so as install/restore confidence of investors in the activities of the manufacturing output while policies to control the continuous fluctuation of the exchange rate should be enacted as a volatile exchange rate will discourage investment in the sector thereby leading to a fall in the sector’s output.

• Details
• Contents