Macroeconomic Policies, Industrialization and Economic Growth in Nigeria

Abstract

This paper employed the simultaneous equation model using the three-stage least
squares technique to analyse the impact of money supply, government expenditure and
exchange rate on industrial output; and the effect of industrial output on economic
growth in Nigeria. The study used annual data covering 1981 to 2017. It was found
that industrial output affects economic growth positively in Nigeria, just as exchange
rate has a positive significant impact on industrial output. The study recommends
that fiscal policies should be formulated with a clear-cut view to addressing the
industrial needs of the country.

Keywords: economic growth, government expenditure, industrialization,
macroeconomic policies, money supply