Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
The study investigates the determinants of output expansion in the Nigerian manufacturing industries between 1980-2010. OLS method was adopted and important determinants were detected. One of the important findings of the preceding analysis is that inflation rate plays the highest significant role in explaining manufacturing output expansion between 1980 -2010. Any policy measure that can curb inflation will surely increase output. Real GDP and per capita real GDP have positive and significant roles to play in the manufacturing output expansion. The inverse relationship between output expansion and capacity utilization in manufacturing is not surprising. Low demand due to ineffective purchasing power caused by inflation will result into excess capacity. A negative relationship between this variable and manufacturing output expansion is not surprising, simply because, if inflation is growing there will be higher prices which could increase the value of output at the expense of lower capacity and lower demand. The significance of the study lies on the fact that if the determinants of output expansion in the manufacturing industries are known, then, policies could be introduced to take care of them and thereby strengthened the position of the manufacturing sector. This could lead to output expansion and employment generation

Keywords: manufacturing, capacity utilization, labour supply, export, competitiveness

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