AN EMPIRICAL ANALYSIS OF THE IMPACT OF PRIVATE SECTOR ON THE ECONOMIC GROWTH AND DEVELOPMENT OF NIGERIA (1980–2010)

 AN EMPIRICAL ANALYSIS OF THE IMPACT OF PRIVATE SECTOR ON THE ECONOMIC GROWTH AND DEVELOPMENT OF NIGERIA (1980–2010) (ECONOMICS PROJECT TOPICS)

ABSTRACT

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 variables and are all significant except total private savings that is insignificant. From the regression result, the following findings were made The estimate coefficients which are 0.8999687 {FPI} shows that a 1 percent increase in foreign private investment will cause 89.9 per cent increase in GDP, 0.0851059 {DPI} shows that a 1 percent increase in domestic private investment will cause an 8.5 per cent increase in GDP, 0.2444129 {TBL} shows that a 1 percent increase in total bank loans will cause 24 per cent increase in GDP. – 0.0268498 {TPS} shows that a 1 percent increase in total private savings will cause 2.6 per cent decrease in GDP.. I recommend that there should be policies that will attract foreign investors; such policies could be the reduction of corporate tax rate. Incentives should be given to local investors to enable them compete with foreign investors world-wide. Policies also should be made against the transfer of capital and profit from Nigeria to foreign countries as it drains the income meant for national development. The government should also maintain political stability in the economy because unstable environment discourages investors.

CHAPTER ONE

INTRODUCTION

1.1     Background of The Study

Privatization has become a major strategy adopted world over to improve the performance of public enterprises. It is a known fact that one feature of public enterprises all over the world but more importantly in developing countries of Africa especially Nigeria is inefficiency, bureaucracy of public enterprises and uncared attitude of most public servants or most people to public work and property. This leads to waste, slow growth and inordinate dependence on government support (in the form of annual subventions) even when the activity is apparently a profitable line.

As a way of improving the fortunes and performance of these enterprises through which profit orientation will be the motive of the enterprises, privatization is being canvassed such that government will divest itself of all its ownership interest and allow……

 AN EMPIRICAL ANALYSIS OF THE IMPACT OF PRIVATE SECTOR ON THE ECONOMIC GROWTH AND DEVELOPMENT OF NIGERIA (1980–2010) (ECONOMICS PROJECT TOPICS)