ABSTRACT

The study investigated the effect of macroeconomic variables on manufacturing sector growth in Nigeria using time series data from 2001 to 2016. The dataset were sourced from Central Bank of Nigeria Statistical Bulletin 2016. The macroeconomic variables used as the independent variables were interest rate, inflation rate and money supply. Based on the analysis, it was found that inflation and interest rate had negative and insignificant effect on manufacturing sector growth in Nigeria, while money supply was positive and significant in affecting manufacturing sector growth in Nigeria. By these findings, it was revealed that money supply was the most significant macroeconomic variable in explaining the variations in manufacturing sector growth in Nigeria. Hence, it was recommended among other things that manufacturers should monitor the changes in macroeconomic variables when taking their business decisions.

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of Contents vi

List of Tables viii

Abstract ix

CHAPTER ONE

Introduction 1

1.1 Background to the Study 1

1.2 Statement of Problem 2

1.3 Objectives of the Study 4

1.4 Research Questions 5

1.5 Research Hypotheses 5

1.6 Scope of the Study 5

1.7 Limitation to the Study 6

1.8 Significance of the Study  6

CHAPTER TWO

Literature Review 8 

2.1 Conceptual Framework 8

2.1.1 Manufacturing Sector Growth and Foreign Direct Investment 10

2.1.2 Manufacturing Sector Growth and Exchange Rate 10

2.1.3 Manufacturing Sector Growth and Inflation (Consumer Price Index) 12

2.1.4 Manufacturing Sector Growth and Broad Money Supply 12

2.1.5 Manufacturing Sector Growth in Nigeria 14 

2.2 Concept of Productivity 19

2.3 Theoretical Framework 27

2.3.1 Quantity Theory of Money 28

2.3.2 Keynesian Theory 28

2.3.3 Monetarism 29

2.3.4 Structuralism 30

2.3.5 The Classical Theory 30

2.4 Empirical Review 31

CHAPTER THREE

Methodology 35

3.1 Research design 35

3.2 Area of Study 35

3.3 Types and Sources of Data 35

3.4 Validity and Reliability of the Instrument 36

3.5 Analytical Techniques 36

3.6 Model Specification 36

3.6.1 Independent variables 37

3.6.2 Dependent Variable 37

CHAPTER FOUR

Presentation of Data, Analysis and Discussion 38

4.1 Presentation of Data 38

4.2 Data Analysis and Discussion of Results 38

4.2.1 Descriptive Statistic 39

4.2.2 Regression Analysis 39

4.2.2.1 Discussion of Results and Hypotheses Testing 41

CHAPTER FIVE

Summary of Findings, Conclusion and Recommendations 43

5.1 Summary of Findings 43

5.2 Conclusion 43

5.3 Recommendations 43

References 

Appendix