MACROECONOMIC POLICY INSTRUMENTS AND MANUFACTURING OUTPUT IN NIGERIA

MACROECONOMIC POLICY INSTRUMENTS AND MANUFACTURING OUTPUT IN NIGERIA

Author by Mr. Dasauki Musa

Journal/Publisher: University Of Port Harcourt Journal Of Business And Economy

Volume/Edition: 11

Language: English

Pages: 40 - 56

Abstract

The study examined the effect of selected macroeconomic policy instruments on sectoral output in Nigeria from 1980-2018. Timeseries data gathered fromCBN statistical bulletin was applied from 1981-2018. The study used the output of 4 manufacturing sub-sectors as the dependent variable namely the Chemical and Pharmaceutical sector, Cement sector, Food beverage and tobacco, Oil refining sector while Broad money supply (BMS), Monetary policy rate (MPR), Real exchange rate (EER) and Government Expenditure (GE) were the independent variables. The study revealed that macroeconomic policieshave a positive influence on manufacturingsector outputin Nigeria. The result indicates a positive impact of government expenditure on Food, Beverages, & Tobacco; Positive impact of Broad money supply and Government expenditure on the Cement, and Food and Beverages Sub-sectors. Government expenditure and Monetary policy Rate hurts the oil Refining sub-sector of the Nigerian Economy. Macroeconomic policies affect different sub-sectors differently. There is a need for a careful application of these policies towards growing the economy.


Other Co-Authors