IMPACT OF GOVERNANCE AND ROAD INFRASTRUCTURE ON INDUSTRIAL GROWTH IN NIGERIA
- Peter Ubi
- Enang Udah
- ( paper pages. 1 - 32 )
Abstract
This study examined if any predictable relationship exists betweenindustrial growth and infrastructure (governance and road) in Nigeriausing data for the period 1980 to 2015. The study employed the vectorautoregressive (VAR) model for the analysis. The estimated resultsshowed that infrastructure (governance and road) has an importantbut restricted role to play in driving industrial growth. Specifically,the results indicated that own shocks constitute a significant source ofvariation in industrial output (IND) forecast errors in the short run,ranging from 66 per cent to 100 per cent over the 10 quarters horizon.Innovations to corruption (COR) and institutional quality (INQ) (allgovernance infrastructures) and innovations to road infrastructureexplain 0 per cent variance of industrial output in the first quarter andthese increase to 0.63 percent in the tenth quarter. The implicationsof these findings is that in the short-run, infrastructure does notsignificantly predict industrial output in Nigeria and industrial outputseems to have a very strong prediction. The study thereforerecommended appropriate governance framework (good institutionaland corruption free framework) that would institutionalize bestpractices in policy formulation and implementation.
Citation
Peter Ubi, Enang Udah.
2019.
"IMPACT OF GOVERNANCE AND ROAD INFRASTRUCTURE ON INDUSTRIAL GROWTH IN NIGERIA"
The Nigerian Journal of Economic and Social Studies,
61 (1): 1 - 32.
JEL Classification
L88, R42, O14
