Proceedings of the 2nd (Hybrid) International Conference, Faculty of Social Sciences, Niger Delta University, Held on March 13, 2024
March, 2024
Pages 189-215
DOI: 10.36108/wjss/ConfP.2024.011
EFFECT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA
Okpara John Ikechukwu and Harrison Eromosele
Abstract
This study focuses on the impact of trade openness, industrial output, total agricultural output and its effect on the economy of Nigeria from the year 1981-2022. The Vector autoregressive model was utilised (because the augmented Dickey Fuller test for stationarity revealed that the variables were stationary at orders one and two) to explain the relationship or Granger causality between the variables used. The result that was arrived at specifies that total agricultural output (TOAGR), trade openness (TO) and real gross domestic product (RGDP) do not granger cause industrial output (IND) while industrial output and total agricultural output granger cause the reaction of the real gross domestic product; RGDP granger cause TO while IND and TOAGR do not granger cause the reaction of TO; lastly IND, RGDP and TO do not granger cause TOAGR. This show has the variables relate to and influence each other. It is therefore recommended that more focus should be channelled towards improving the real gross domestic product through investment in the industrial sector as well as the agricultural outputs.
Keywords: Trade openness, Real gross domestic product, industrial output, total agricultural output, Vector autoregressive.