Macroeconomic Policies, Industrialization and Economic Growth in Nigeria

Abstract

This paper employed the simultaneous equation model using the three-stage leastsquares technique to analyse the impact of money supply, government expenditure andexchange rate on industrial output; and the effect of industrial output on economicgrowth in Nigeria. The study used annual data covering 1981 to 2017. It was foundthat industrial output affects economic growth positively in Nigeria, just as exchangerate has a positive significant impact on industrial output. The study recommendsthat fiscal policies should be formulated with a clear-cut view to addressing theindustrial needs of the country.Keywords: economic growth, government expenditure, industrialization,macroeconomic policies, money supply