PUBLIC INFRASTRUCTURE CAPACITY UTILIZATION ON MANUFACTURING GROWTH IN NIGERIA (2000-2010). A RESEARCH PROJECT MATERIAL ON ECONOMICS
The purpose of this study is to analyze how public infrastructure and capacity utilization could aid manufacturing growth in a developing economy like Nigeria. The concern is understandable where productivity growth is major determinant of the future of standard of living.
Economist have written extensively on the decline of productivity growth and how it affects output growth and has gone to great length to try identify the reason for the show down.
BACKGROUND OF THE STUDY
Prior to the early 1970 many Nigerians did not realize the importance of public infrastructure and capacity utilization as a major key to economic growth and development towards a better standard of living hence, it was perceived that public policies to promote economic growth and development international competitiveness were traditionally focused on savings and private investment in plant and equipment to the detriment of public infrastructure has not actually led us to the promise land and this led to a high rate of rural urban drift or migration.
Over the years, this has led to the increase in government policy to invest more in public infrastructure as a way of fostering economic growth and development while not equally ignoring the importance capacity utilization in the quest for economic growth.
STATEMENT OF THE PROBLEM
Economists and other close observers have tried to identify the factors responsible for the falling productivity. Notably among the factors are poor and inconsistent public policy, high unemployment and under employment, high and persistent inflation, political instability and increasing military expenditure and the deteriorating state of public infrastructure. Certainly all these factors to varying degrees influence the rate of manufacturing growth. Prior to the 1970s, government has been making efforts to sustain improvement in the lives of its citizens, which undoubtedly depends on the growth of the economy. Improvements of the citizenry depend on sustainable increase in the per capita out put. By this measure Nigeria has not done fairly well due to the drop in oil price of the early 1980’s
Attention should be given to the serious deterioration of the nation public infrastructure, which raises the question as to whether public capital significant affects economic development? Policy makers and researchers concerned with economic issues have claimed for years that public infrastructure; investment is one of the primary means to implement a strategy of economic growth and development, infact one of the ways local government encourages local industries is through investing in various types of infrastructure.