%0 Journal Article
%T Manufacturing Capacity Utilization and Industrial Development in Nigeria: An Assessment (1976 ¨C 2005)
%A O.O Simon-Oke
%A O.V Awoyemi
%J African Research Review
%D 2010
%I 
%X This paper investigates the impact of manufacturing capacity utilization on industrial development in Nigeria during the period of 1976 ¨C 2005. Manufacturing capacity utilization, value added and employment generation were regressed on index of industrial productivity (which served as the proxy for industrial development) using the co-integration and error correction mechanism as analytical tools. The time series properties of the variables were investigated by conducting a unit root test and further to the cointegration analysis. The econometric evidence confirms that there is a long run positive relationship between Manufacturing capacity utilization, value added and index of industrial productivity in Nigeria. It was recommended based on this relationship that as a result of the low capacity utilization experienced in Nigeria, the government should rectify the infrastructural inadequacies by revamping the nationĄ¯s deteriorated infrastructural facilities and encourage local sourcing of raw materials and the provision of intermediate products to improve the manufacturing value added and generate mass employment in Nigeria.
%U http://www.ajol.info/index.php/afrrev/article/view/58315