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Inflation and capacity utilisation in Nigeria’s manufacturing sector

African Journal of Economic Policy

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Title Inflation and capacity utilisation in Nigeria’s manufacturing sector
 
Creator Ishola, OA
 
Subject Capacity utilisation, Inflation, Manufacturing
 
Description This study analysed the relationship between inflation and capacity utilisation empirically leaning on the model employed by Baylor (2001). It utilised time series secondary data using least square multiple regression technique. The quarterly data utilised were tested for stationarity using ADF test. The multiple regression results showed a significant negative relationship between inflation and capacity utilisation. This finding was contrary to the economic argument which underpinned the intuition that the relationship between inflation and capacity utilisation should be positive. We also found that although the relationship between the two varied significantly over time, the model revealed that if current capacity utilisation rate doubled, inflation will decline by 3.6 per cent in Nigeria.Keywords: Capacity utilisation, Inflation, Manufacturing
 
Publisher Department of Economics, University of Ibadan
 
Contributor —
 
Date 2014-02-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/ajep/article/view/101513
 
Source African Journal of Economic Policy; Vol 20, No 1 (2013); 1-30
1116-4875
 
Language eng
 
Relation http://www.ajol.info/index.php/ajep/article/view/101513/90703
 
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