The Contributions of Exchange Rate on the Growth of Manufacturing Sector in Nigeria: An Econometric Approach

Abstract

The study empirically examined the contributions of exchange on the growth of manufacturing sector in Nigeria. The specific objectives were to; examine the impact of exchange rate, money supply, and trade openness on the performance of the manufacturing sector in Nigeria. Secondary data was extracted from Central Bank of Nigeria statistical bulletin, 2020. Ordinary least square of multiple regression technique was employed to examine the impact of independent on dependent variables. Based on the results, the findings revealed that exchange rate had a negative and significant impact on performance of manufacturing sector, while money supply and trade openness had a positive and significant effect on the performance of the manufacturing sector. The study recommended that the monetary authority should introduce direct policies of regulating price stability in the economy via regulating money supply in order to decelerate the rising inflationary trend in the economy.