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Rivers State University, Port Harcourt.
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| Title: | Effect Of External Sector On The Performance Of Manufacturing Sector In Nigeria |
| Author(s): | Momodu A. A , Njoku K. C, Ndukwe H. C. |
| Abstract: | The study investigated the effect of external sector on the performance of manufacturing sector in Nigeria spanning from 1985 to 2022. The data were obtained from Central Bank of Nigeria (CBN) and World Bank, Development Indicators (2022). The main objective of this study were to examine the impact of export trade, external reserve, exchange rate, foreign direct investment and external debt on the performance of manufacturing sector in Nigeria. The formulated model were subjected to unit root test using the Augumented Dickey Fuller unit root approach. The outcome of the ADF showed that the variables have mixed order of integration. This means that some of the variables are stationary at level I(0) while others became stationary after first difference I(0). Based on this scenario, the study adopted the Auto-Regressive Distributive Lag Model to ascertain if there is a long-run relationship among the variables using the bound test. The bound test outcome indicated a long-run relationship between the variables. Further findings show that exchange rate had a negative but significant relationship with performance of manufacturing sector in the long-run while external debt indicated a positive and significant relationship with performance of manufacturing sector in long-run and previous year period of the short-run. Finally, the relationship between export trade and performance of manufacturing sector. It was recommended amongst others that federal government through the Central Bank of Nigeria should provide sufficient foreign exchange to investors in the manufacturing sector. This will enable them increase their productivity, ensure food security and price stability. |
| Keywords: | Export Trade, External Reserve, Exchange Rate, Foreign Direct Investment and External Debt |
| Journal: | Economic and Social Science Review Vol 2 No 1 |
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