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An Empirical Analysis Of The Impact Of Deposit Money Bank On The Manufacturing Sector In Nigeria (1980-2011)
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Statement of problem
The nation had enunciated import substitution
and processing of raw materials policies in the past. These had made the
sector to be dependent on the industrialised nation of the world for
capital equipment and contributed in no small way to our present
economic predicament. The sector is currently heavily dependent on
importation of raw material and spare parts. This has put pressure on
the countries foreign exchange earnings.
Manufacturing sector like
any other business cannot be carried on extensively unless funds are
available for maintenance and procurement of equipment and necessary
inputs. on the other hand deposit money banks accused the manufacturer
of loan given to them. Thereby not bringing high degree of loss in their
banking activities.
Unfaithful and dishonest to them are being
critized sequels to this manufacturer. moreover the small scale business
can hardly be over stressed, most manufacturer in Nigeria economy have
been denied of attention report assessment or could it be that the
deposit money bank are not playing their role in promoting
manufacturing?
Adequate funding is a requirement for running a
successful business and it is certainly one of the major reasons for the
poor performance of most companies in the Nigeria manufacturing sector.
This is because banks are wary of investing their distressed sector
that is hemmed in by a hostile business environment is not encouraging.
Sad enough, the evolving scenario these days, at least before the crash
in the capital market, is that the capitalists and banks prefer to
advance facilities to clients to enable them invest in securities
market. Such clients would in turn go to bad†and watch their
investments multiply over night without doing anything rather than too
invest such money in any SME (small and medium scale enterprise) or so
called “risky†business. This thinking of the capitalists and the banks
further weakened the real sector thereby denying the manufacturing
sector the opportunity to generate employment.
OBJECTIVE OF THE STUDY
1.
To find out if inadequate credits from the deposit money banks to the
manufacturing sector has contributed to the reduction in the
productivity of the manufacturing sector.
2. To determine how the unwillingness of the deposit money bank to give loans to the manufacturing sector has affected.
3.
Also to look into the problems that militates against the manufacturing
sector apart from finance in Nigeria and the recommendation where
necessary.
HYPOTHESIS OF THE STUDY
The following hypothesis are tested on this study
Ho: The manufacturing sector contribution has no significant impact to lending in the deposit money bank.
Ho: Deposit money bank interest rate has no significance effect on manufacturing development in Nigeria.
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ABSRACT - [ Total Page(s): 1 ]This research study, by means of a robust statistical analysis investigates the impact of deposit money bank on the manufacturing sector in Nigeria. Data from 1980-2011 were examined. The empirical analysis carried out showed that the lag of exchange and commercial bank credit have a significant and positive impact on manufacturing sector in Nigeria within the period under review, and as such the monetary and capital market in Nigeria should be further developed to meet standards and provide the ... Continue reading---
