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THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010).

Format: MS WORD  |  Chapter: 1-5  |  Pages: 78  |  2248 Users found this project useful  |  Price NGN5,000

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THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

 

ABSTRACT

The objective of this study is to analyze the impact of industrialization on economic growth in Nigeria. Because of the link between industrialization and economic growth, both theoretical and econometric analysis are used to examine the contribution of industrialization to economic growth in Nigeria, using GDP as the dependent variable and industrial output, labour force, capital stock and human capital as independent variables from 1980-2010. The results show that industrial output, capital stock, significantly contribute to economic growth while human capital and labour force do not contribute significantly to economic growth. The detailed results are: in industrial output, an increase in industrial output by 1 unit increases GDP by 2 folds; an increase in capital stock increases GDP by over 100 folds; an increase in human capital does not stimulate increase in GDP because the t-statistic is insignificant; and in labour supply, the same remark on human capital applies. On the whole, the adjusted R2value shows that the explanatory power of the model is as high as 92%. The study recommends that government should develop policy measures to improve formal education that will produce graduates relevant for industrial needs of the country, improve legal frame works to protect human right, and property rights, and improvement on social and economic infrastructure to make the industrial sector competitive.

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THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010).

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