Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 338

Full Length Research Paper

Do disaggregated manufacturing sectors matter in Nigeria’s economic growth: VECM approach?

Uche C.C. Nwogwugwu
  • Uche C.C. Nwogwugwu
  • Department of Economics, Faculty of Social Sciences, Nnamdi Azikiwe University, Awka, Nigeria.
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Amaka G. Metu
  • Amaka G. Metu
  • Department of Economics, Faculty of Social Sciences, Nnamdi Azikiwe University, Awka, Nigeria.
  • Google Scholar
Okezie A. Ihugba
  • Okezie A. Ihugba
  • Department of Economics, Alvan Ikoku Federal College of Education, Owerri, Nigeria.
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  •  Received: 30 November 2020
  •  Accepted: 20 May 2021
  •  Published: 31 May 2021

Abstract

The research used vector autoregressive (VAR) and the vector error correction mechanism (VECM) technique to see whether disaggregated manufacturing sectors had any effect on Nigeria's economic growth over the last 49 years (1970-2018). The productivity of the oil refining subsector is an effective tool for economic growth, according to empirical findings; the coefficient is positive and meaningful in the short run and insignificant in the long run. A further review of the findings reveals that the other sub-sector identified as M3 in the study plays an important role in Nigeria's long-term economic growth, with variance decomposition results indicating positive fluctuations. The study recommends that the manufacturing sector must be acknowledged not only as a promoter for wealth creation, poverty alleviation, and employment generation but as a major sector for enhancing economic growth

 

Key words: Manufacturing, oil refining, vector error correction mechanism (VECM), Nigeria.