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INDUSTRIAL POLICY AND MANUFACTURING SUBSECTOR PERFORMANCE IN NIGERIA: An Assessment of Two Regimes

INDUSTRIAL POLICY AND MANUFACTURING SUBSECTOR PERFORMANCE IN NIGERIA: An Assessment of Two Regimes

 

Abstract: Recently, the Nigerian government signalled a return to an explicit industrial policy regime by prioritizing the growth of selected manufacturing subsectors, such as the textile, apparel and footwear subsector through several support interventions and incentives. This study empirically investigated if this new industrial policy regime has significantly improved performance of the manufacturing sector, especially comparing prioritized sectors with less-prioritized sectors. Using the manufacturing subsectors performance data panel compiled by the National Bureau of Statistics and applying rigorous policy impact evaluation approaches, the study found no significant performance difference between prioritized subsectors and less prioritized subsectors or between the earlier regime of implicit industrial policy and the new explicit industrial policy regime.
JEL classifications: L78, L88, O55

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