CONNECTION BETWEEN NIGERIAN GDP AND FINANCIAL INVESTMENTS IN TRANSPORTATION AND REAL ESTATE (1990-2009)
Abstract:
Nigerian economic development is intricately tied to the construction sector, which plays a pivotal role in enhancing its overall worth. This research aims to investigate the interplay between the building and construction industry and its impact on the Gross Domestic Product (GDP), as well as other interconnected sectors within the economy. Despite being vital contributors to the economy, these real sectors often suffer from government neglect, mainly due to the absence of a consistent GDP measurement approach for assessing their performance.
The primary objective of this study is to uncover the existing relationships between the building and construction sector and the real sectors, as well as the connections between GDP and these real sectors. This research assumes that the sector under examination significantly influences the building and construction industry, provided there is political and social stability and consistent government policies over the study period.
Data for this study was sourced from the Central Bank of Nigeria’s statistical bulletin for the years 1990 to 2009, focusing on gross domestic product figures presented in millions of Naira. The data collected was subjected to analysis using simple linear regression methods and evaluated over time to identify trends.
The study’s conclusions revealed that the initial analysis between construction and six sectors of the economy yielded positive results, although with relatively low R2 values ranging from 2% to 4%. When examining the relationship between construction and other sectors of the economy against GDP, the values ranged from 9% to 95%. Furthermore, the multiple regression analysis produced results ranging between 59% and 95%.
In light of the relatively low R2 values for construction against the real sectors and the GDP against construction, along with the observed temporal fluctuations, there is cause for concern. Consequently, it is recommended that concerted efforts be made to elevate the R2 values to a more significant level by according priority to the construction sector through governmental policies. The construction industry, being a cornerstone of national development, warrants increased attention. Additionally, future research could explore distinct periods such as the ten-year military regime (1990-1999) and the ten-year civilian regime (2000-2009) to provide a basis for comparative analysis. The Federal Ministry of Finance should also consider adopting the dollar value as a foundation for budget preparation and resource planning.
CONNECTION BETWEEN NIGERIAN GDP AND FINANCIAL INVESTMENTS IN TRANSPORTATION AND REAL ESTATE (1990-2009), GET MORE, ACTUARIAL SCIENCE PROJECT TOPICS AND MATERIALS