European Journal of Sustainable Development Research

Private Domestic Investment and Manufacturing Sector Output in Nigeria
Lawrence Oghenemaro Ebelebe 1, Chukwuemeka Amaefule 1 *
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1 University of Port Harcourt, NIGERIA
* Corresponding Author
Research Article

European Journal of Sustainable Development Research, 2020 - Volume 4 Issue 4, Article No: em0140
https://doi.org/10.29333/ejosdr/8479

Published Online: 29 Aug 2020

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APA 6th edition
In-text citation: (Ebelebe & Amaefule, 2020)
Reference: Ebelebe, L. O., & Amaefule, C. (2020). Private Domestic Investment and Manufacturing Sector Output in Nigeria. European Journal of Sustainable Development Research, 4(4), em0140. https://doi.org/10.29333/ejosdr/8479
Vancouver
In-text citation: (1), (2), (3), etc.
Reference: Ebelebe LO, Amaefule C. Private Domestic Investment and Manufacturing Sector Output in Nigeria. EUR J SUSTAIN DEV RE. 2020;4(4):em0140. https://doi.org/10.29333/ejosdr/8479
AMA 10th edition
In-text citation: (1), (2), (3), etc.
Reference: Ebelebe LO, Amaefule C. Private Domestic Investment and Manufacturing Sector Output in Nigeria. EUR J SUSTAIN DEV RE. 2020;4(4), em0140. https://doi.org/10.29333/ejosdr/8479
Chicago
In-text citation: (Ebelebe and Amaefule, 2020)
Reference: Ebelebe, Lawrence Oghenemaro, and Chukwuemeka Amaefule. "Private Domestic Investment and Manufacturing Sector Output in Nigeria". European Journal of Sustainable Development Research 2020 4 no. 4 (2020): em0140. https://doi.org/10.29333/ejosdr/8479
Harvard
In-text citation: (Ebelebe and Amaefule, 2020)
Reference: Ebelebe, L. O., and Amaefule, C. (2020). Private Domestic Investment and Manufacturing Sector Output in Nigeria. European Journal of Sustainable Development Research, 4(4), em0140. https://doi.org/10.29333/ejosdr/8479
MLA
In-text citation: (Ebelebe and Amaefule, 2020)
Reference: Ebelebe, Lawrence Oghenemaro et al. "Private Domestic Investment and Manufacturing Sector Output in Nigeria". European Journal of Sustainable Development Research, vol. 4, no. 4, 2020, em0140. https://doi.org/10.29333/ejosdr/8479
ABSTRACT
This study examined the impact of private domestic investment on manufacturing sector output in Nigeria from 1970 to 2017. The study specifically looked at the impact of private domestic investment on manufacturing sector’s output in a static and dynamic model. Six variables were employed in the study and were sourced from CBN statistical bulletin and World Development Indicators for the period covering from 1970 to 2017. The analysis of the variables undergoes three approaches, the pre-analysis of data, model estimation and the diagnostic analysis of the model. The first approach employed tables and graphs to explain the behaviour of the data, equally the univariate analysis of the data were examine with the Augmented Dickey-Fuller equations and the possibility of long-term relationship. The models were estimated with the ARDL estimator and model selected with the Akaike Information Criteria, and finally the models estimated were tested using the Jaque-Bera statistics, Ramsey RESET Test, Breusch-Godfrey and Harvey test for residual normality, specification bias, autocorrelation and heteroskedasticity respectively. The results from the analytical methods shows that there is over 82 percent increase in the output of Manufacturing sector in the late 1970s and early 1980s and over 98 percent increase the output of the manufacturing sector in the late within 2010 and 2015. Also, the study observed that the responses of output of the manufacturing sector to private domestic investment are positive and significant in the static and dynamic models. The study found that the impact of private domestic investment on manufacturing sector output were fairly elastic in the static model and fairly inelastic in the dynamic model. Finally, the study found that the model have a weak adjustment mechanism. The adjustment of disequilibrium between static and dynamic equilibrium is weak or just 24.9 percent. Since private domestic investment is significant and positively impacted on the performance of the manufacturing sector irrespective of the time zone, the study recommended for increase in the credit to private sector by the apex monetary authority.
KEYWORDS
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