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Services Sector Growth and Development Sustainability in Nigeria

Received: 8 May 2017     Accepted: 18 May 2017     Published: 11 July 2017
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Abstract

Between 1981 and 2013, services share of gross domestic product in Nigeria grew five times the share of manufacturing coming second to agriculture. However, the output growth rates of services and manufacturing exceed that of agriculture. The study formulated the question as to whether the observed services sector expansion can support long-term economic growth. Two models were specified for estimation with manufacturing and agriculture as dependent variables and vectors of services outputs as independent variables. Data expressed in 1990 constant basic prices were sourced from Central Bank of Nigeria and expressed in logarithm form for regression. Using two test statistics, all variables in the regression were confirmed stationary at not more than one order of integration Given that the variables are cointegrated, the autoregressive distributed lag model and three other augmented static estimators were applied to the models. All diagnostics tests support the stability of our models and reliability of results. We conclude that a strong service-manufacturing association is necessary for services sector growth to sustain long-run economic development.

Published in Journal of Business and Economic Development (Volume 2, Issue 4)
DOI 10.11648/j.jbed.20170204.12
Page(s) 204-214
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Services, Manufacturing, Agriculture, Growth, Development, Sustainability, Nigeria

References
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    Olumuyiwa Olamade. (2017). Services Sector Growth and Development Sustainability in Nigeria. Journal of Business and Economic Development, 2(4), 204-214. https://doi.org/10.11648/j.jbed.20170204.12

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    ACS Style

    Olumuyiwa Olamade. Services Sector Growth and Development Sustainability in Nigeria. J. Bus. Econ. Dev. 2017, 2(4), 204-214. doi: 10.11648/j.jbed.20170204.12

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    AMA Style

    Olumuyiwa Olamade. Services Sector Growth and Development Sustainability in Nigeria. J Bus Econ Dev. 2017;2(4):204-214. doi: 10.11648/j.jbed.20170204.12

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  • @article{10.11648/j.jbed.20170204.12,
      author = {Olumuyiwa Olamade},
      title = {Services Sector Growth and Development Sustainability in Nigeria},
      journal = {Journal of Business and Economic Development},
      volume = {2},
      number = {4},
      pages = {204-214},
      doi = {10.11648/j.jbed.20170204.12},
      url = {https://doi.org/10.11648/j.jbed.20170204.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170204.12},
      abstract = {Between 1981 and 2013, services share of gross domestic product in Nigeria grew five times the share of manufacturing coming second to agriculture. However, the output growth rates of services and manufacturing exceed that of agriculture. The study formulated the question as to whether the observed services sector expansion can support long-term economic growth. Two models were specified for estimation with manufacturing and agriculture as dependent variables and vectors of services outputs as independent variables. Data expressed in 1990 constant basic prices were sourced from Central Bank of Nigeria and expressed in logarithm form for regression. Using two test statistics, all variables in the regression were confirmed stationary at not more than one order of integration Given that the variables are cointegrated, the autoregressive distributed lag model and three other augmented static estimators were applied to the models. All diagnostics tests support the stability of our models and reliability of results. We conclude that a strong service-manufacturing association is necessary for services sector growth to sustain long-run economic development.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Services Sector Growth and Development Sustainability in Nigeria
    AU  - Olumuyiwa Olamade
    Y1  - 2017/07/11
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    N1  - https://doi.org/10.11648/j.jbed.20170204.12
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    JF  - Journal of Business and Economic Development
    JO  - Journal of Business and Economic Development
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    SN  - 2637-3874
    UR  - https://doi.org/10.11648/j.jbed.20170204.12
    AB  - Between 1981 and 2013, services share of gross domestic product in Nigeria grew five times the share of manufacturing coming second to agriculture. However, the output growth rates of services and manufacturing exceed that of agriculture. The study formulated the question as to whether the observed services sector expansion can support long-term economic growth. Two models were specified for estimation with manufacturing and agriculture as dependent variables and vectors of services outputs as independent variables. Data expressed in 1990 constant basic prices were sourced from Central Bank of Nigeria and expressed in logarithm form for regression. Using two test statistics, all variables in the regression were confirmed stationary at not more than one order of integration Given that the variables are cointegrated, the autoregressive distributed lag model and three other augmented static estimators were applied to the models. All diagnostics tests support the stability of our models and reliability of results. We conclude that a strong service-manufacturing association is necessary for services sector growth to sustain long-run economic development.
    VL  - 2
    IS  - 4
    ER  - 

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Author Information
  • Department of Economics, College of Social and Management Sciences, Caleb University Imota, Lagos, Nigeria

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