Project Materials

PUBLIC INFRASTRUCTURE CAPACITY UTILIZATION ON MANUFACTURING GROWTH IN NIGERIA (2000-2010)

Chapter one

INTRODUCTION

Background of the study

The goal of this research is to examine how public infrastructure and capacity utilisation can aid manufacturing growth in a developing economy like Nigeria. The concern is understandable given that productivity growth is a major determinant of the future standard of living.

Economists have written extensively about the drop in productivity growth and how it affects output growth, and they have gone to great lengths to try to determine the cause of the downturn.

Prior to the early 1970s, many Nigerians did not realise the importance of public infrastructure and capacity utilisation as a major key to economic growth and development towards a better standard of living, so it was perceived that public policies to promote economic growth and development international competitiveness were traditionally focused on savings and private investment in plant and equipment to the detriment of public infrastructure, which has not actually led us Over time, this has resulted in an increase in government policy to invest more in public infrastructure as a means of promoting economic growth and development, without forgetting the necessity of capacity utilisation in the pursuit of economic growth.

Statement of the Problem

Economists and other close observers have attempted to identify the factors driving the decline in productivity. Among the factors are weak and inconsistent public policy, high unemployment and underemployment, high and persistent inflation, political instability, increased military spending, and decaying public infrastructure. Certainly, all of these factors have some influence on the rate of manufacturing growth.

Prior to the 1970s, the government made efforts to better the lives of its residents, which depended on economic growth. Citizenship improvements are dependent on long-term increases in per capita output. By this measure, Nigeria has not done very well since the decline in oil prices in the early 1980s.

The substantial deterioration of the nation’s public infrastructure calls into question whether public capital has a meaningful impact on economic development.

For years, policymakers and researchers interested in economic issues have claimed that public infrastructure investment is one of the primary means of implementing an economic growth and development strategy; in fact, one of the ways local governments encourage local industries is by investing in various types of infrastructure.

The goal for industrialization cannot be over stressed, as can be recognised from the study of development economics, because industrialization increases growth and in the long run development for this reason developing economy is cognisant of her industrial progress.

Capacity utilization is an essential element in any developing economy since it assists in ensuring that resources are spent effectively and efficiently in the creation of public infrastructure that would be useful in supporting the manufacturing expansion in the economy.

Thus, the question which thesis or study, want to address or the definition of problem is that; due to investment in public infrastructure and capacity utilization improved output growth in the manufacturing sector?

Has public infrastructure investment employing investment in capacity utilization as it pertains to output have beneficial influence on the populace; Does investment in public infrastructure and capacity utilization.

In the short run boost output stabilization or achieve the run the targeted macro economic goals in the long run. These are indeed statement or problem that has to be addressed in this study.

OBJECTIVES AND RATIONALE OF THE STUDY

This study aims to stabilise the link between public infrastructure, capacity utilisation, and manufacturing growth in Nigeria. The objectives are as follows.

Examining the government’s role in providing public infrastructure.

Identifying limiting issues in capacity utilisation.

Assess the significance of both governmental and private sector investment for production growth.

Measure the effectiveness and influence on output.

Significance of the Study

The relevance of producing major outcomes in delivering public infrastructure while utilising the requisite capacity can frequently be determined by what is done, how it is done, when it is done, and who it is intended for.

The study is expected to be a collaborative effort to identify, articulate, and highlight the presence, causes, and impacts of public infrastructure, capacity utilisation, and output growth in Nigeria.

It is also a desire to streamline its effects and increase their potency. It is hoped that the research will benefit policymakers and pique students’ interest in conducting additional research in the topic of study.

HYPOTHESIS

The study is founded on the notion that:

Ho: public infrastructure and capacity utilisation have been successful in increasing industrial sector output.

HI: public infrastructure and capacity utilisation have not been successful in increasing industrial sector output.

METHODOLOGY

The concerns to be addressed are both theoretical and empirical. A example regression model will be defined and tested using a simple regression analysis technique.

On the theoretical side, efforts would be directed towards a review of public infrastructure development, capacity utilisation, and productivity growth, which will serve as the foundation for a simple empirical model.

SCOPE OF THE STUDY

The period of focus of this study will be from 1973, the end of the civil war in Nigeria, to the year 200. It is important to note that this period will also include the pre-sab, sap, and post-sab eras in Nigeria.

Furthermore, the study will largely focus on the impact of public infrastructure and capacity utilisation on productivity growth in Nigeria.

Organisation for the Study

To achieve the stated objectives, the chapters are divided into five sections: chapter one is an introduction, chapter two is a literature review, chapter three is research on the theoretical framework and model specification, chapter four is a presentation and interpretation of regression results, and chapter five is a summary, recommendation, and conclusion.