International Journal of Accounting and Management Sciences (IJAMS)
July 2022
DOI https://www.doi.org/10.56830/IJAMS07202204
Authors
Walid Gbadebo Adebosin
Adegboyega Sule Oyewole
Anu Keshiro Toriola
Ibrahim Olabanji Amida
Saheed Abisayo Sumonu
Abstract
In Nigeria, firms specifically manufacturing firms lack sufficient ability to innovate in order to
create value and add value to expand their operation to bring about expansion and economic
progress because there is no conducive environment for them to operate. Against this
background, this study examined manufacturing economic value creation and economic
development in Nigeria. The study specifically, analyses the trend of manufacturing economic
value creation, estimates the relationship between manufacturing economic value creation and
economic development and analyse the direction of causality relationship between
manufacturing economic value creation and economic development in Nigeria. The secondary
data for the analysis were collected from World Bank Development Index (WDI). The data
were analysed using the Fully Modified Ordinary Least Squares (FMOLS) method and Granger
causality test while normality test, correlation analysis and unit root test were conducted as a
preliminary evaluation of the data collected. The result of the fully modified OLS indicates that
value creation (β=0.629402, t=10.27719 & p<0.05) and greenhouse gas emission (β=0.114513, t=3.108018 & p<0.05) exert a significant positive effect on economic development in Nigeria while the coefficient of manufacturing capacity utilisation (β=0.064705, t=1.054548, p>0.05)
indicates that manufacturing capacity utilisation does not have a significant effect on economic
development in NigeriaThe study concluded that value creation has a significant positive effect
on economic development in Nigeria. among others, the study recommends the need for
government to ensure that policy or programmes on manufacturing should be aimed at
improving their capacity to create value by providing a conducive environment that help to
improve performance in the Nigerian manufacturing industry
Keywords: Economic Development, Manufacturing sector, Value Creation, Value added,
Fully Modified OLS
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