ABSTRACT

The study examined impact of manufacturing sector output on economic growth in Nigeria ranging from 1981-2017 accordingly, the study used the method of ordinary least square econometric technique and unit root testing for the purpose of examining the impact of manufacturing sector output on economic growth. It is an investigation of the influence of manufacturing sector output on economic growth in Nigeria for the period 1981-2017. The variables used in the study include real GDP, manufacturing sector capacity utilization (MCU), industrial sector output, exchange rate and inflation rate. Unit root test was conducted by applying the Augmented Dickey-Fuller (ADF) unit root test. The results showed that all the variables except INfrt were non-stationary at level; however, afterfirst differencing, all the variables became stationary at 5% critical value. The results also revealed that manufacturing sector capacity utilization (MCU) has negative and significant influence on real GDP while industrial sector output (LMO) has positive and significant influence on real GDP in the economy. The study recommended that government should intensify efforts toward promoting socioeconomic infrastructural, macroeconomic and institutionalframework ofthe nation in order to bring in a good relationship between external and domestic institutions with the main objective being to effectively harness the mobilizedfunds towards productive manufacturing sector in the country. In doing so, manufacturing sector output will improve more, leading to higher increase in the contribution ofthe sector to real gross domestic product ofNigeria.