Electricity Supply and Manufacturing Output in Nigeria: Autoregressive Distributed Lag (ARDL) Bound Testing Approach

Yahaya Yakubu, Salisu Baba Manu, Umar Bala


Electricity has been identified as primary and independent factor of production in modern production process. Hence, this study explore the relationship between electricity supply and manufacturing sector’s output in Nigeria using time series data from 1971 to 2010. It adopts Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration. Our findings reveal long run relationship between the variables, and shows significant and negative error correction term. Manufacturing output is found to be positively dependent on electricity in both short run and long run, but only significant in the long run.The policy implication of these findings is that electricity supply must be increased if the productive capacity of the manufacturing sector is to be improved. More importantly, this is a prove that if the country is to achieve its economic vision of being among the 20 World industrialized economies in the year 2020, adequate and stable increase in electricity supply, particularly to the manufacturing sector, must remain an uncompromising policy.

Keywords: Electricity Supply, Manufacturing Sector, Factors of Production, Output

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email: JESD@iiste.org

ISSN (Paper)2222-1700 ISSN (Online)2222-2855

Please add our address "contact@iiste.org" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright © www.iiste.org