Bank Reforms And Manufacturing Sector Performance In Nigeria:- Ede Loveth N

ABSTRACT

The study is an attempt to investigate the effect of banking sector reforms as well as credit to the manufacturing sector on manufacturing sector performance in Nigeria. The study estimated a multiple regression model with manufacturing sector output as the dependent variable and interest rate exchange rate, average capacity utilization, dummy variable(to capture reform period) gross domestic product, and inflation are the independent variables. The study established that there exist a shortrun positive relationship between banking sector reform and manufacturing sector output in Nigeria. The impact is also statistically significant. The study recommends that concerted effort by the monetary authorities to strengthen the financial institutions will create a ripple effect that will translate to improved productivity in the manufacturing sector.