Manufacturing Sector and Import Penetration in Nigeria

Abstract

The degree to which domestic demand of a country is being satisfied by imports is known as import penetration. This has proven detrimental to the activities of the manufacturing sector in Nigeria, after examining the relationship between the manufacturing sector and import penetration in Nigeria for the period 1981 to 2017. The classical linear regression model (CLRM) within ordinary least square (OLS) estimation technique was used to estimate the stated objective of this study. The study recommends among other things that to further enhance the activities of the manufacturing sector, the government should adopt a near perfect mix between the import substitution strategy and the export promotion strategy of industrialization. This will place Nigeria at the forefront in Africa and to the world at large.

Keywords: manufacturing sector, import penetration, trade openness