World Summit on Management Sciences
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Accepted Abstracts

The Impact of Determinants of Private Investment on Manufacturing Output in Nigeria

PA Adeyemi1* and AO Oloruntuyi2
Ekiti State University, Nigeria

2  Federal University of Technology, Nigeria

Citation: Adeyemi PA, Oloruntuyi AO (2020) The Impact of Determinants of Private Investment on Manufacturing Output in Nigeria. SciTech Management Sciences 2020. Thailand 

 

Received: December 26, 2019         Accepted: December 30, 2019         Published: December 30, 2019

Abstract

There is inability of government to meet up in accomplishing the adopted policy measures to address the issue of private investment-manufacturing challenges. Therefore, this study examined the determinants of private investment and manufacturing output in Nigeria. The study set out specifically to explore the determinants of private investment in Nigeria. The data utilized for this study is secondary in nature and it spans from 1981 to 2016. The study employed ARDL cointegration analysis and Error Correction Model as the estimation techniques to capture the stated objectives. The results of the study revealed that public investment has negative and significant impact on manufacturing output in Nigeria while credit to private sector has significant positive relationship with manufacturing output in Nigeria. Other variables in the study in the long run have no significant impact on manufacturing output in Nigeria. Therefore, the study concludes that only public investment and credit to private sector are the main determinants of private investment and that credit to private sector is capable of promoting manufacturing sector of Nigerian economy. Based on these findings, the study recommends that government should effectively channel her resources on productive sector and while spending on capital projects, it should be properly monitored.
Keywords: Private Investment, Manufacturing Output, Public Investment and Co-integration Analysis