Role Of Small Scale Industries On The Economic Development Of Nigeria:- Ezeh Ifeanyi L

ABSTRACT

Role of small-scale industries af the economic development of Nigeria has been investigated for a period of thirty-seven years, with variahle such as: interest rate. exchange rate, industrial olllput and credit to private sector. The data used.for analysis were sourced J,-om the central bank of Nigeria bulletin special edition of 2018. The study applied econometric tools such as: augmented dickey and.fuller test. cointegration. error correction model, granger casuality test and ordinary least square to investigate the e_/(ect of small-scale industries on the economic development in Nigeria. The study investigated the effect of small-scale industrial on economic de,·elopment and to test ff there is a flow of cou.rnlilyfrom small-scale industry to economic development for the period. The result reveals that. small scale industries has a significant effect on economic development for the period of review. There was also the evidence of a bi-directional causality of flow from the industrial sector to economic development. The study recommended that: the government throug,h the monetary authorities in the country, should regulate the jlul'tuations in the exchange rate sinc:e exc:hunge rate injluences economic devdopment significantly. Adopting a flexible exchange rate policy, industrial output for the period is positive and significantly influence economic devleopomenl in the country. thus. the government shold adopt the inward economic model for development by enhancing the credit availability lo small scale industries in the economy. provide them with friendly economic policies and restrict the level of foreign dependency.