Trade Openness and Manufacturing Sub-Sector Growth in Nigeria (Published)
The manufacturing sub-sector and trade openness play key roles in economic growth of nations, various government administrations in Nigerian recognize these roles and have made significant efforts (SAP, Trade, Export, Digital Economy and Market access policies. etc.) sub-sector and trade openness in the economic growth of Nigeria remain epileptic except importation. Thus, the study examined trade openness and manufacturing sub-sector in Nigeria between 1981 and 2020. Manufacturing sub-sector and trade openness were proxied by foreign direct investment, trade openness index, Foreign Portfolio Investment, foreign remittances and exchange rate which adopted as check variable and analyzed using both descriptive and econometrics techniques. The results showed that trade openness and manufacturing sub-sector exhibited positive relationship during the period of investigation. However, foreign portfolio investment portrayed subtractive influence on the performance of the manufacturing sub-sector for the period. The study recommends that government of Nigeria should implement the policy of duty draw back/suspension scheme (DDBS) which stipulates the refund of import duties on raw materials including packaging materials used in manufacturing exportable good, subsidize loan and transitory tax exemption to encourage both indigenous and foreign investors to participate more in the manufacturing sub-sector.
Keywords: economic growth, manufacturing sub-sector, trade openness
Interest Rate Dynamics and Its Impact on the Performance of the Manufacturing Sub-Sector in Nigeria (Published)
The major focus of the research is to empirically investigate the impact of interest rate dynamics on performance of manufacturing- sub sector in Nigeria. The research covers the period between 1980 and 2019. This period is important since it includes the pre-structural adjustment programme (SAP) era where interest rate was not liberalized and the structural adjustment programme period where interest rate is liberalized. The cointegration technique with its implied error correction mechanism was used for the study. The result shows that the high interest rate in Nigeria has hindered the performance of the manufacturing sub sector. The GARCH and ARCH results indicates that interest rate dynamics has influenced the performance of the manufacturing sub- sector. The result also confirms a long run relationship among the variables. It was therefore recommended amongst others, that there should be a drastic reduction in the interest rate coupled with the adoption of liberalized interest rate regime with some caution; this will increase the performance of the manufacturing sub- sector in Nigeria.
Keywords: Minimum rediscount rate, Monetary Policy Rate., Treasury Bills, and inflationary spiral., manufacturing sub-sector