EMPIRICAL EVIDENCE FROM NIGERIA ON THE RELATIONSHIP BETWEEN INFLATION AND MANUFACTURING GROWTH

Authors

  • IHUGBA, OKEZIE A. Department of Economics, Alvan Ikoku Federal College of Education, Owerri Imo State
  • ORJI, ALEXANDER C Department of Economics, Nnamdi Azikiwe University, Awka, Anambra State
  • DURU, ERASMUS E. Department of Financial Management Technology, Federal University of Technology, Owerri Imo State

Keywords:

Manufacturing, Growth, Inflation, Regression

Abstract

This research investigated the relationship between inflation and Nigerian manufacturing sector growth between 1981 and 2019, utilizing performance measures such as inflation rate, money supply, and gross domestic investment. The data was collected from secondary sources such as the Central Bank of Nigeria's Statistical Bulletin and the World Bank. The major finding is that in the short and long run, inflation and manufacturing sector growth are unrelated. Changes in Nigeria's inflation rate do not explain changes in the manufacturing sector's growth. The data also suggest that inflation does not assist producers with pricing power and that a fall in money supply has resulted in a decrease in manufacturing sector growth. The paper suggests that policymakers make huge investments in infrastructures that is insufficient, such as power supply and road network

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Published

2023-09-05

How to Cite

IHUGBA, O. A., ORJI, A. C., & DURU, E. E. (2023). EMPIRICAL EVIDENCE FROM NIGERIA ON THE RELATIONSHIP BETWEEN INFLATION AND MANUFACTURING GROWTH. JOURNAL OF ECONOMICS AND ALLIED RESEARCH, 8(2), 60–75. Retrieved from https://jearecons.com/index.php/jearecons/article/view/300

Issue

Vol. 8 No. 2 (2023): June

Section

Articles

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