Purpose: This paper examined the potential of domestic industrial output on economic growth in Nigeria. Approach/ Methodology/ Design: An Autoregressive Distributed Lag (ARDL) model procedure was employed for data analysis. Findings: The results revealed that the contribution of the domestic industrial output to economic growth was appalling which was necessitated by the worrisome image of “Made-in-Nigeria” goods. It was also showed that the results that domestic industrial output and domestic savings have positive relationships with real gross domestic product (RGDP) in the long run. This implies that a rise in the level of each of domestic output and domestic savings necessitated an increase in real gross domestic product (RGDP). Practical Implication: The implication presented in this study is related to the concerned authorities. The results indicate the need for diverse domestic production in order to achieve a healthy competition in the industrial sector in the country. Originality/Value: The study innovates by employing various statistical tools for exploring the effect of domestic industrial output on economic growth. The significant contribution of this study is in identifying that domestic production in Nigeria has been lagged behind in terms of output performance in the economy.

The study examined the optimal level of capital inflows for manufacturing exports and economic growth in Nigeria. Annual data from 1981-2017 on foreign direct investment (FDI), foreign portfolio investment (FPI), cross border borrowing CBB (components of capital inflows), financial sector development (FSD), real gross domestic product (RGDP) and manufacturing exports (MEX) were sourced from various issues of the Central Bank of Nigeria (CBN) Statistical Bulletin while data on gross capital formation (GCF) and human capital (HC) were sourced from World Bank Development Indicator (WDI) database. Data collected were analyzed using threshold regression econometric techniques. The results from the optimal level showed that capital inflows (CINF) threshold value of (25.55%) with coefficient of (9.94) annually is the optimal point of capital inflows for Nigeria and the threshold point for manufacturing exports indicates no capital inflows (CINF) threshold value for manufacturing exports in Nigeria. This study concludes that the optimal point of capital inflows for economic growth is 25.55%; any threshold level above this sustainable level, economic growth will be affected negatively in Nigeria but no capital inflows threshold point exist for manufacturing exports and therefore recommends that excessive capital inflows should be avoided in the country so that it does not make administration and management of monetary policy difficult, while the needed capital inflows should be well monitored and channeled into sectors (like manufacturing, agriculture, mining and quarrying etc...) that have absorptive capacity for them.

A lot of studies have examined the relationship between capital inflows and economic growth in Nigeria; Most of these studies examined either oil export, non-oil export or total exports, without specific emphasis on manufacturing export; given that manufacturing export is fundamental to economic growth. In this case, we examined the dynamic impact of capital inflows on manufacturing exports and economic growth in Nigeria between 1981 and 2017 using annual data. Data collected were analyzed using Autoregressive Distributed Lag (ARDL) econometric techniques and the results revealed that capital inflows have significant and positive impact on economic growth (t= 4.42884, p< 0.005) both in the short and long run; and positive but statistically insignificant impact on manufacturing exports (t= 0.73, p> 0.05). Therefore, the study concluded that capital inflows have significant impact on economic growth but no impact on the manufacturing exports in Nigeria; and we recommend that the government and monetary authorities’ in Nigeria should formulate economic policies that will promote manufacturing exports through adequate and efficient infrastructural facilities that would encourage the needed capital inflows to the manufacturing sector and increase the production of goods for local consumption and export.