Determinants of Private Sector Performance in Nigeria

Abstract

This study has empirically examined the likely factors responsible for the private sector performance in Nigeria. It employed econometric methodology and techniques such as Augmented Dickey-Fuller, Phillips-Perron and error correction mechanism (ECM) with annual time series data covering the period 1996 to 2011. Findings revealed significant and positive impacts of domestic credit to private sector, property right and investment freedom on private sector performance in the country. The study, thus recommends that the government of Nigeria should provide a favourable business environment for the private sector to thrive.

Keywords: Private sector, manufacturing value added, property right, neoclassical, ECM, Nigeria