Infrastructure and Manufacturing Sector Performance in Nigeria

Ihuoma Chikulirim Eke, Felix Awara Eke and Awara Emeng Edom
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Ihuoma Chikulirim Eke: Department of Economics, University of Calabar, Calabar, Nigeria
Felix Awara Eke: Department of Economics, University of Calabar, Calabar, Nigeria
Awara Emeng Edom: Department of Economics, University of Calabar, Calabar, Nigeria

International Journal of Research and Scientific Innovation, 2023, vol. 10, issue 7, 130-139

Abstract: The objective of this study was to investigate the effect of infrastructure (electricity consumption and paved roads) on manufacturing sector performance in Nigeria for the period 1981-2019. The ex post facto research design was adopted for the study, using a combination of the traditional Ordinary Least Squares (OLS) econometric method, and the Augmented Dickey-Fuller unit root test for robust and valid estimation results. The co-integration test showed that the equations in the model were integrated. The study findings revealed that infrastructure, proxy by electricity supply had an adverse but not significant effect on manufacturing sector performance while paved roads had a positive and significant impact on manufacturing performance in Nigeria. The study recommends a total overhaul of the electricity sub-sector and targets increased supply specifically for industrial consumption as well as exploring alternative options to increase the road network such as public-private partnership arrangements given its importance to industrial performance.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bjc:journl:v:10:y:2023:i:7:p:130-139

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