impact of manufacturing sector and exchange rate in nigeria
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY.
The impact of manufacturing sector on the economic growth and development of any country cannot be overemphasized. This is because of its capacity to generate employment opportunities for various growths in the economy. Foreign exchange earnings, improvement of the economic wellbeing of the entire population etc. however, the survival of the manufacturing sector depends largely on varieties of factor among which include the availability of informed and efficient managers of resources, skilled labor, and the government industrial policies availability of goo e.t.c
However in a developing economy like Nigeria, the availability of capital goods is constrained by the low technological and base, which necessitates the dependencies on the developed countries of the world for the supply of capital goods. The demand for foreign capital goods therefore necessitates the demand for expatriates technician and spare parts for the maintenances of the equipment. That is why lows of foreign exchange earnings is spent annually in this purpose the volume of local currency spent on capital goods and expatriate works largely depends on the rate of exchange of the local currency to the currencies of the world it is worth mentioning that prior to the economic crises of 1981, the manufacturing sector had benefited from abundant foreign earnings of 1974 due to oil boon. The economic crisis of the early 1980’s by oil gut led to the decline in foreign exchange earnings and indirectly the decline in growth of manufacture sector in an attempt to revive the manufacturing sub sector of the economy, various policies have been adopted in the past among which are import substitution, industrialization policy, export promotion, government direct participation in manufacturing production and among others. Despite the various government policies on the manufacturing sector, an appreciable impact
INTRODUCTION
1.1 BACKGROUND OF THE STUDY.
The impact of manufacturing sector on the economic growth and development of any country cannot be overemphasized. This is because of its capacity to generate employment opportunities for various growths in the economy. Foreign exchange earnings, improvement of the economic wellbeing of the entire population etc. however, the survival of the manufacturing sector depends largely on varieties of factor among which include the availability of informed and efficient managers of resources, skilled labor, and the government industrial policies availability of goo e.t.c
However in a developing economy like Nigeria, the availability of capital goods is constrained by the low technological and base, which necessitates the dependencies on the developed countries of the world for the supply of capital goods. The demand for foreign capital goods therefore necessitates the demand for expatriates technician and spare parts for the maintenances of the equipment. That is why lows of foreign exchange earnings is spent annually in this purpose the volume of local currency spent on capital goods and expatriate works largely depends on the rate of exchange of the local currency to the currencies of the world it is worth mentioning that prior to the economic crises of 1981, the manufacturing sector had benefited from abundant foreign earnings of 1974 due to oil boon. The economic crisis of the early 1980’s by oil gut led to the decline in foreign exchange earnings and indirectly the decline in growth of manufacture sector in an attempt to revive the manufacturing sub sector of the economy, various policies have been adopted in the past among which are import substitution, industrialization policy, export promotion, government direct participation in manufacturing production and among others. Despite the various government policies on the manufacturing sector, an appreciable impact