Management of macroencomic variables has been noted as instrumental to a well performing manufacturing sector. This study thus examined the effect of macroencomic variables on the manufacturing sector in Nigeria within a liberalised economic era of 1986 to 2018. The Autoregressive Distributive Lag model was employed for data analysis. The results revealed that macroeconomic variables has 93 significant short run policy effect but no significant long run effects on manufacturing sector output in Nigeria. The endogenous dynamics of manufacturing sector previous year outputs exerted a significance influence on the macroeconomic variables long run relationship effect on current year. The explanatory variables suggested that money supply M2 , interest rate INTR and credit to private sector CPS exerted positive effects on manufacturing sector output at short term trends. The study thus posits that macroeconomic variables have varying levels of effects on the manufacturing sectors of Nigerian economy. The monetary authority should employ the monetary policy stance in a pattern that increases money supply in order to boost investment in manufacturing sector which would eventual bring about improved output to Nigeria. Dr. Loretta Anayo Ozuah "Macroeconomic Variables and Manufacturing Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38420.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38420/macroeconomic-variables-and-manufacturing-sector-output-in-nigeria/dr-loretta-anayo-ozuah
International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 2, January-February 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD38420 | Volume – 5 | Issue – 2 | January-February 2021
Page 242
Macroeconomic Variables and
Manufacturing Sector Output in Nigeria
Dr. Loretta Anayo Ozuah
Department of Banking and Finance, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria
ABSTRACT
Management of macroencomic variables has been noted as instrumental to a
well performing manufacturing sector. This study thus examined the effect of
macroencomic variables on the manufacturing sector in Nigeria within a
liberalised economic era of 1986 to 2018. The Autoregressive Distributive Lag
model was employed for data analysis. The results revealed that
macroeconomic variables has 93% significant short run policy effect but no
significant long run effects on manufacturing sector output in Nigeria. The
endogenous dynamics of manufacturing sector previous year outputs exerted
a significance influence on the macroeconomic variables long run relationship
effect on current year. The explanatory variables suggested that money supply
(M2), interest rate (INTR) and credit to private sector (CPS) exerted positive
effects on manufacturing sector output at short term trends. The study thus
posits that macroeconomic variables have varying levels of effects on the
manufacturing sectors of Nigerian economy. The monetary authority should
employ the monetary policy stance in a pattern that increases money supply in
order to boost investment in manufacturing sector which would eventual
bring about improved output to Nigeria.
KEYWORDS: Money supply, manufacturing sector output, Nigeria, inflation,
interest and exchange rate
How to cite this paper: Dr. Loretta Anayo
Ozuah "Macroeconomic Variables and
Manufacturing Sector Output in Nigeria"
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of Trend in Scientifi