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

Ekundayo Mesagan and Amarachi C. Ezeji

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Manufacturing; Social Infrastructure; Economic Infrastructure; Inflation. (search for similar items in EconPapers)
JEL-codes: C32 H54 H55 L60 (search for similar items in EconPapers)
Date: 2016-12-12
New Economics Papers: this item is included in nep-afr
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