THE POWER SECTOR AND ITS IMPACTS ON INDUSTRIALIZATION OF BUSINESSES IN NIGERIA

Yıl 2018, Cilt: 2 Sayı: 1, 38 - 59, 30.06.2018

Femi Akinbola

Öz

The study investigates the link
between power supply and business industrial development by examining the influence of government
policies on power supply and industrial development in Nigeria. The Johansen
Co-Integration technique was adopted to determine the long run relationship
among some macroeconomic variables that includes the industrial component of
Real Gross Domestic Product, explicitly chosen using explanatory variables. The
independent variables includes electricity consumption, electricity production
(Kwh), growth rate of labour force, real gross fixed capital formation and
telephone lines per hundred population and their impact on industrial component
of real GDP. Annual time series data on these variables from 1981 to 2010 were
collected from the Central Bank of Nigeria Statistical Bulletin, the World Bank
and United Nations Statistics. Augmented Dickey Fuller (ADF) and Phillip-Perron
(PP) tests are employed to test the order of integration of the variables. The
study also performed a Vector Error Correction Model-VECM to correct possible disequilibrium
caused in the short-run relationships. The study concluded that electricity
condition which is a result of existing government policies exerts a negative
impact on industrial output in the long run affects the business viability.

 

Anahtar Kelimeler

Industrial Development, SME Growth

Kaynakça

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