Author: Ude Damian Kalu, S.I. Madueme and S. Ekesiobi Chukwunonso
Volume: 60 Issue No:2 Year:2018

Abstract: This study investigated the relationship between stabilization policies, infrastructural development and industrialization process in Nigeria. The study estimated a slightly modified form of the basic St. Louis equation with data ranging from 1981 to 2015. The main finding is that increase in electricity, gas and water infrastructure would facilitate industrialization process in Nigeria. The Johansen cointegration testing approach demonstrated a significant long-run relationship between these three variables. The study found that government revenue (fiscal policy), communication, electricity, gas and water infrastructures have significant effect on the development of crude petroleum and natural gas. The findings on solid mineral sector suggested that interest rate (monetary policy) has a significant inverse relationship with the development of solid minerals. The study also found that all the infrastructural variables have significant effects on solid mineral development. Also, the study found that transport infrastructure plays a significant role in the development of the manufacturing sector. It concluded that, with strong determination and positive actions, Nigeria will surmount its industrialization challenges.

JEL Classifications: E63, H54, O14