This study examined the effect of government expenditure on the growth of the industrial sector in Nigeria. A regression analysis was applied in the analysis of the data. The study found that government capital expenditure has positive and significant effect on the industrial sector; tax has positive and significant effect on the industrial sector; monetary policy rate has positive and significant effect on the growth of the industrial sector, while real interest rate has a negative and no significant effect on the growth of the industrial sector. From the findings, we conclude that government policy has significant effect on the growth of the Nigerian industrial sector. It recommends that government fiscal policies such as public expending should be directed toward improving the quality of infrastructures in the country, especially the power sector, so that the cost of production can reduce. Government should examine should create an enabling environment with the right infrastructure, improve the security situation and reduce the epileptic power supply related issues. Also, government should examine its monetary policy variables such as interest rate and monetary policy rate. Furthermore, to promote growth, government should develop the industrial sectors of the economy through its capital expenditure.
This study examined the effect of foreign direct investment on a developing economy. The study employed multiple regression models to estimate the relationship that exists between sectorial inflow of foreign direct investment and Nigeria economic growth. Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The findings of the result reveal that foreign direct investment in the agricultural sector have positive but no significant effect, foreign direct investment in the manufacturing sector have positive and significant effect, foreign direct investment in the mining and querying sector have negative but no significant effect, foreign direct investment in the transport and communication sector have positive and significant effect while foreign direct investment in the oil and gas sector have positive and significant effect on Nigeria real gross domestic products. The study concludes that the oil and gas sector have the greatest impact on Nigeria economic growth followed by manufacturing, agricultural, transport and communication sectors while mining and quarrying reduces gross domestic product. Nigerian policy makers should design sectoral policy reforms with the intention of creating an enabling business environment, improve infrastructure, address issues of insecurity in the north and south that hinder foreign direct investment in mining and quarrying sectors. Furthermore, there is the need to strengthen policy cohesion with regards to foreign direct investments to ensure that mining and quarrying sectors perform as well as the oil and gas sector.
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