CHAPTER FIVE
Summary, Conclusion and Recommendation
5.1 Summary
Many literatures were reviewed in the cause of this study which will serve as evidence that so
many researchers have tried to empirically study and analyze industrialization, import
substitution industrialization, impact of industrialization among others in relation to economic
growth. But this study however tried to study the link between industrial development and
economic growth in Nigeria. The objectives of the study are to examine the causal relationship
between industrial development and economic growth in Nigeria, to determine whether there is a
long-run relationship between industrial development and economic growth in Nigeria, and
finally to draw the policy implication of the nature of the relationship between industrial
development and economic growth. These objectives were achieved with the use of statistical
and econometric tools given the data collected from world development indicator (WDI), Central
Bank of Nigeria (CBN). The data utilized for the study is an annual time series data of three
proxies of manufacturing output (MOP), mining sector output (MNG) and electricity (ELT) and
one proxy for economic growth which gross domestic product (GDP). The data utilized is for the
period of 1983-2018 (35 years). Before conducting any statistical or econometric estimation, a
unit root test was carried out by employing Augmented Dickey-Fuller test statistic to check for
the stationarity of the variables used for the study. Also granger causality test was conducted in
order to examine the causal relationship that exists between the variables under study. The
johansen co-integration test was also conducted to check for long-run relationship which paved
the way for Vector Autoregression Model (VAR) to further examine relationships.
5.2 Conclusion
After a series of reviews and a great deal of analysis on the topic, it can be concluded that
industrial development and economic growth are related both theoretically and empirically but
the magnitude of the relationship varies from country to country. This study however deals with
the case of Nigeria, therefore, it can be seen that not all the industrial development proxies have
correlation with the economic growth proxy, this is because it was found that mining sector
output (MNG) and gross domestic product (GDP) have a unidirectional causality. Also
manufacturing output (MOP) and GDP have a unidirectional causality between them as well.
What this means is that industrial development and economic growth have a short-run
relationship but it is somewhat insignificant. It was also found that industrial development and
economic growth do not exhibit long-run relationship in Nigeria. Based on these findings, we
can carefully conclude that industrial development and economic growth in Nigeria are in
significantly related in short-run and in the long-run have absolutely no relationship what so
ever.
5.3 Recommendation
According to the findings of this research, the study recommend based on the following:
1. Nigeria government should not exaggerate the importance of attaining economic growth
through industrial development in Nigeria.
2. The government and its relevant authorities should provide conducive investment
environment by removing the structural rigidities that exist in the economy to encourage
industrial activities.
3. Government should endeavor to provide stable supply of power, good roads for
transportation of goods and people, functional legal system, security of lives and
property, infrastructural facilities etc.
RFERENCES
A Solow, R.M. (1956). A contribution to the theory of economic growth. Quarterly Journal of
Economics 70, 56-94.A Family Embeddedness Perspective”, Journal of Business
Venturing, 18,573-596.
A, Greiner. (2005), Mathematical models in Economics, Vol. II - Models of Economic Growth
Abba, et al (1985) The Nigerian Economic Crisis Cause and solution. Zaria Gaskiya cooperation
Limited. 1970-2008: A Disaggregated Analysis, Business and Economics Journal,
Volume 2010: BEJ-4: 1
Abu, N and Abdullahi, U. (2010), Government Expenditure and Economic Growth in Nigeria,
Adegoke Y. O (2013), Disparity in Income Distribution in Nigeria: A Lorenz Curve and Gini
Index Approach, Universal Journal of Management and Social Sciences Vol. 3, No.7;
July 2013
Adesina, O.S, (2013), Unemployment and Security Challenges in Nigeria, International Journal
of Humanities and Social Science Vol. 3 No. 7; April 2013
African Development Bank (2012) “Inclusive Growth Agenda” Briefing Note for AfDB’s long
term strategy. African Development Bank (2015), Nigerian Economic Report, 2015.
Agénor, P. &Montiel, P. J. (2008). “Development Macroeconomics”.(3rd ed.). Princeton:
Princeton University Press.
Aigheyisi S. C.(2013), The Relative Impacts of Federal Capital and Recurrent Expenditures on
Nigeria’s Economy (1980-2011), American Journal of Economics 2013, 3(5): 210-221
DOI: 10.5923/[Link].20130305.02
Akaike, H. (1969) “Fitting autoregressive models for prediction” Annals of the Institute of
Statistical Mathematics 21, 243 – 247.
Akram, Muhammad and Khan, FaheemJehangir. 2007: “Public Provision of Education and
Government Spending in Pakistan” PIDE Working Papers, No.40.
Aldrich, H.E., & Cliff, J. (2003), “The Pervasive Effects of Family on Entrepreneurship: Toward
a Family Embeddedness Perspective”, Journal of Business Venturing, 18,573-596.
AmartyaSen: (2007): “Development as Freedom”, Oxford University Press, London.
Anio, A.A.(1997);The Philosophy of Guided Deregulation; the Nigerian experience, paper
present by the former honourable minister of finance at the university of Uyo.
Anyawu, J.C, Oyefusi, A. Oahenan, H. and Dimowo, F.A (1997) Publisher ltd, Onisha, Nigeria
1st Edition pp 34-44. Asian Development Bank (2013) – “Framework of Inclusive
Growth: Key Indicators for Asia and the Pacific” Asian Development Bank (2013) –
“Framework of Inclusive Growth: Key Indicators for Asia and the Pacific”.
Atılım S. (2008), A Critical Note on the Forecast Error Variance Decomposition, Discussion
Paper No. 08-065
B O, Ohwofasa, H Obukohwo, and Obeh M, A (2012), Impact of Government Expenditure in
Balami, D.H (2006). Macroeconomic Theory and Practice. Salawe prints, Off Leventies,
Wulari, and Maiduguri.
Barro, R.J. and X. Salai-Martin (2003), Economic Growth, 2nded, Cambridge, MA: MIT Press.
Becker, G. S. 1967: “Human Capital and the Personal Distribution of Income: An Analytical
Approach”. Ann Arbor, University of Michigan, Woytinsky Lecture.
Bhatia H.L (2002): Public Finance, 25th Edition, Vikas Publishing House, PVT Ltd, [Link]
H.O (2004): An Economic Growth Model Showing Government Spending with reference
to Colombia and Learning-bydoing: Colombia Economic Journal, Vol. 2, No. 1, 2004.
Brian, S. and V.R. Howard (2005) Modern Macroeconomic, Its Origins, Development and
Current State. Edward Elgar Publishing Limited. UK.
Buhari, A.L. (1987). Straight to the Point, ICAN Economics. Unilorin Press, University of Ilorin,
Nigeria Cantillon Richard.1931 “Essai sur la nature du commerce en general”, translated
by Higgs H. Macmillan, London,.pp. 47- 49. Cantillon, Richard. 1755. “Essai Sur La
Nature Du Commerce en General”. London: Gyles. CAPOD (2014) “What is Inclusive
Growth: discussion paper” [Link].
Central bank of Nigeria (2013): Central bank of Nigeria Statistical Bulletin vol. 24, pp. 76-79
Central bank of Nigeria Bulletin vol 6. Federal Government of Nigeria (FGN): Nigeria
Enterprises promotion decree 1972.
Chang &Grabel (2004) “Reclaiming Development: An Alternative Economic Policy Manual”.
Zed Books, London.
D. Gujarati and D. C. Porter, (2009) Basic Econometrics, 5th (International) Edition, McGraw-
Hill/Irwin, Singapore.
DeJong, D.N., J.C. Nankervis, N.E. Savin and C.H. Whiteman, (1992). Integration versus trend
stationarity in time series. Econometrica, 60(2): 423-433.
Dickey, D. and W. Fuller, (1979). Distribution of the estimators for autoregressive time series
with a unit root. Journal of the American Statistical Association, 74(366): 427–731.
Dolado, J. and Lutkepohl, H (1996) Making Wald Tests work for Cointegrated VAR Systems.
Econometric Review, 15, 369-386. Econometric Review, 15, 369- 386. Education on
Economic Growth in Nigeria, 1986-2011: A Parsimonious Error Correction Model,
African journal of scientific research vol. 10, no. 1(2012)
Federal Republic of Nigeria (1988): Industrial Policy of Nigeria, Abuja. Federal ministry of
industries. Gerald, M. M (1971): Leading issues in Economic Development. James E.
Rauch New York.
Griffin, K.B and Enos, (1970), Planning Development London addsion wisely publishing
company Hircman, A.O ((1968). The economics of Impor- substituting industrialization
in Lating America”arteerly journal of economy Vol. 83:4-6 February.
Griffin, K.B and Enos, (1970), Planning Development London addsion wisely publishing
company Hircman, A.O ((1968). The economics of Impor-substituting industrialization in
Lating America”arteerly journal of economy Vol. 83:4-6 February. Inequality in
Thailand”.International Journal of Trade, Economics and Finance, vol.3 No 6 of 2012.
Jacoboson, S. (1993) “The lenthg of the Infant Industry period evident from Engineering
industry Korea” Wolrd Development- Vol 3. 407-419.
Kousoynnis, A. (1979). Theory of econometrics 2nd Edition London and Basing state.
Kousoynnis, A. (2001), Palgare, New York. Landes, D.S. (1969), The Unbound Prometheus:
Technological Change and Development in Western Europe from 1750 to the present,
Cambridge: Cambridge University Press.
Landes, D.S. (1969), The Unbound Prometheus: Technological Change and Development in
Western Europe from 1750 to the present, Cambridge: Cambridge University Press.
Landes
M.A. and O. Oladele. (2005). Public Education Expenditure Defense Spending in Nigeria: An
Empirical Investigation.