Abstract

THE IMPACT OF INDUSTRIALIZATION ON ECONOMY GROWTH: THE NIGERIA EXPERIENCE (2008-2017)

Ochuenwike, Georgina Nwogoand Ofozor, Frank Julius

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Abstract The work focused on the Impact of Industrialization on Economic Growth: The Nigeria Experience (2008-2017). It dealt specifically with the contributions of the manufacturing industries to the economy growth of Nigeria. Three research questions guided the research work and regression analysis was utilized as the statistical tool. The findings showed that industrialization will go a long way in motivating economic growth in Nigeria. The study utilized secondary data which were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin (2013), Nigeria Economic Society and National Bureau of Statistics (NBS). The study specified a workable model, which has GDP as the dependent variable while industrial output, foreign direct investment, interest rate, foreign exchange rate and inflation rate were independent variables. Correlation was used to ascertain whether there is a positive relationship between the Real GDP and Industrial Output, which gave a correlation coefficient of 0.998, indicating a strong positive relationship. The study recommended amongst others, that the government should redirect its industrial and investment policy so as to increase output of the domestic production (RGDP), flexible exchange rate and control inflation rate since that showed increase in exchange and inflation rate, decreased output; industrial and investment policy should be flexible on infant industries so as to encourage productivity and improve GDP. The research finding also suggested to the government to change the deplorable state of some of our roads for easy transportation of goods and also provide stable power supply and make the environment conducive for both local and foreign investors. It was concluded that industrialization is an indispensible tool in economic growth and development. Key Words: Industrialization, Economic Growth, Experience, Model, Inflation Rate, Interest Rate, Gross Domestic Product, Stochastic Variable.

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