This study analyses the linkage between inflation rate and manufacturing sector of the Nigerian economy over the period of (1981-2011). The study used data sourced from the Central Bank of Nigeria (CBN). The ordinary least square technique (OLS) was used to specify and examine the relationship between the variables Government expenditure, inflation rate and money supply which are the independent variables and the manufacturing index which is the dependent variable for the first model. The independent variables for the second model are consumer price index, Nominal interest rate and exchange rate while the dependent variable is the manufacturing index. The explanatory power of the models was given by the R2 of 11.799% for the first model and 62.85% for the second model and was subjected to the t-test and f-test to test the significance of the independent variables. The second model based on the result, we found out that it was more significant than the first model. The research revealed that inflation has a positive effect on the manufacturing sector in Nigeria. This goes a long way to say that increase in inflation leads to increase in the manufacturing output and that manufacturers should not to be discouraged by the increase in inflation rate, and depreciating value of Naira.
TABLE OF CONTENT
Title page - - - - - - - -i
Approval page - - - - - - - -ii
Dedication - - - - - - - -iii
Acknowledgement - - - - - - -iv
Abstract - - - - - - - - -v
CHAPTER ONE: INTRODUCTION
1.1 Background of the study - - - - -1
1.2 Statement of problem - - - - -4
1.3 Research Question - - - - - -5
1.4 Objective of the study - - - - -6
1.5 Research hypothesis - - - - -7
1.6 Significance of the study - - - - -7
1.7 Scope of study - - - - - -8
1.8 Limitation of study - - - - - -8
1.9 Definition of terms - - - - - -9
1.1 Background of the study - - - - -1
1.2 Statement of problem - - - - -4
1.3 Research Question - - - - - -5
1.4 Objective of the study - - - - -6
1.5 Research hypothesis - - - - -7
1.6 Significance of the study - - - - -7
1.7 Scope of study - - - - - -8
1.8 Limitation of study - - - - - -8
1.9 Definition of terms - - - - - -9
CHAPTER TWO: LITERATURE REVIEW
2.1 Characteristics of manufacturing
sector in Nigeria - - - - - -11
2.2 Concept of inflation - - - - - -13
2.3 Types of inflation - - - - - - -18
2.4 Theories of determinant of inflation - -21
2.5 Determinants of inflation in Nigeria - -28
2.6 Trade openness and manufacturing sector -31
2.7 Global economic down turn and the
manufacturing sector Performance
in the Nigerian economy - - - - -33
2.8 The Dynamics of money supply
and inflation in Nigeria - - - - -36
2.1 Characteristics of manufacturing
sector in Nigeria - - - - - -11
2.2 Concept of inflation - - - - - -13
2.3 Types of inflation - - - - - - -18
2.4 Theories of determinant of inflation - -21
2.5 Determinants of inflation in Nigeria - -28
2.6 Trade openness and manufacturing sector -31
2.7 Global economic down turn and the
manufacturing sector Performance
in the Nigerian economy - - - - -33
2.8 The Dynamics of money supply
and inflation in Nigeria - - - - -36
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design - - - - - - 38
3.2 model specification - - - - - -38
3.3 Estimation Procedure - - - - -40
3.4 Source of data - - - - - - -40
3.5 Statistical tool and evaluation techniques -41
3.1 Research design - - - - - - 38
3.2 model specification - - - - - -38
3.3 Estimation Procedure - - - - -40
3.4 Source of data - - - - - - -40
3.5 Statistical tool and evaluation techniques -41
CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
4.1 Presentation of results - - - - -45
4.2 Interpretation of results - - - - -46
DATA PRESENTATION AND ANALYSIS
4.1 Presentation of results - - - - -45
4.2 Interpretation of results - - - - -46
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary - - - - - - - -60
5.2 Conclusion - - - - - - -62
5.3 Recommendation - - - - - -63
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary - - - - - - - -60
5.2 Conclusion - - - - - - -62
5.3 Recommendation - - - - - -63
