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An Empirical Analysis Of The Impact Of Private Sector On The Economic Growth And Development Of Nigeria (1980–2010)
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Unfortunately, most of them were structurally ill-conceived,
economically inefficient with accumulated huge financial losses and thus
absorbing disproportionate share of domestic credit. They were also
sustained through heavy budgetary allocations of the country (Jerome,
1996, as cited in Eke, 2000). For instance, the state-owned enterprises
(SOEs) are adjudged to have contributed substantially to public sector
deficit and have financed less than one fifth of their investments
through Internally Generated
Resources (IGR) (Nair and Filippides,
1988). As some governments ran into severe fiscal problems such that
loans became increasingly difficult to rise at home and abroad, they
were forced to consider some radical methods of reviving the SOEs. Such
reforms embarked upon by developing countries included privatization.
Kikeri (1994) has noted that the high costs and poor performance of SOEs
and the modest and fleeting results of reform efforts have turned many
governments towards privatization.
1.2 STATEMENT OF THE PROBLEM
It
is the inefficiency of government-run public enterprises today that
calls for the privatization of these enterprises. However one may note
that privatization may not likely be the only solution of getting
government-run enterprises on the ideal path of efficiency, deregulation
and market oriented economy. The study therefore believes that there
should be some silent initiatives that if properly harnessed could be
the shining light to lead the nation’s ship to the desired harbor.
1.3 Research Questions
1. Is privatization the engine of economic growth in Nigeria?
2. Is there any relationship between privatization and economic growth?
1.4 Objectives Of The Study
1. To determine the relationship between private sector spending and GDP.
2. To ascertain the relationship between public sector spending and GDP.
3. To find out whether there is any relationship between public and private sector spending and GDP.
1.5 Research Hypothesis
Privatization does not have impact on economic growth in Nigeria.
1.6 Significance Of The Study
1. To provide information on the privatization of the Nigerian privatization exercise.
2.
To determine whether privatization has contributed positively or
negatively to the growth and development of the Nigerian economy.
3. To educate students about the nature of the Nigerian private sector.
1.7 Scope Of The Study
The study covers the impact of the private sector from 1980-2010.
1.8 Definition Of Basic Concept
PRIVATISATION:
This is the process of transferring ownership interest and control in a
government-owned enterprise to the private sector.
FULL PRIVATISATION: The government sells the enterprise in full to private individuals or groups.
PARTIAL PRIVATISATION: The government sells some of its shares or holdings to the private sector.
PUBLIC SECTOR: They are organizations that are owned and managed by the government.
PRIVATE SECTOR: This consists of private business ownership.
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ABSRACT - [ Total Page(s): 1 ]The study examines the private sector as the engine of economic growth and development in Nigeria. A model was specified and data were collected from the period of 1980-2010. The method used in this research work is the ordinary least square (OLS) regression model and variables which are: gross domestic product (GDP) as the dependent variable while foreign private investment (FPI), domestic private investment (DPI), total private savings (TPS), and total bank loans (TBL) are the independent vari ... Continue reading---
