Structure and growth of the gross domestic product (1960 -2008): implications for small-scale enterprises in Nigeria

Anyanwu so¹*, Offor US², Adesope OM³ and Ibekwe uc⁴

^*1Department of Agricultural Economics and Extension, Rivers State University of Education, Port Harcourt, Nigeria.

²Department of Crop science, Rivers State University of Education, Port Harcourt, Nigeria.

³Department of Agricultural Economics and Extension, University of Port Harcourt, Nigeria

⁴Department of Agricultural Economics Federal University of Technology, Owerri, Nigeria.

*Coresponding Author‘s E-mail  sixtusanyanwu@yahoo.com

Accepted 06 June 2013

Abstract

In this study the Gross Domestic Product (GDP) of Nigeria was disaggregated into their different constituent parts and the nature of their growth within an interval of each five years period determined. Also the significant determinants of the GDP between 1960 and 2008 were ascertained.  Data used for the study was obtained from Central Bank of Nigeria Statistical Bulletin, Golden Jubilee edition, 2008. The analysis covered the period from 1960 to 2008. A descriptive statistical tool such as percentages was used in analyzing the data. Also, multiple regression analysis was employed to ascertain the nature of relationship existing between the GDP and agriculture, industry, building and construction, wholesale and retail trade and services shares of the GDP. The results showed that agricultural sector maintained a dominant position from 1960 to 1989, while the industrial sector contributed more to the GDP from 1990 to 2008. Results of data analysis showed also that the building and construction sector consistently made the least contribution to the GDP throughout the period under review. Furthermore, results of regression analysis showed that the significant determinants of Nigeria’s GDP were agriculture, industry, wholesale and retail trade, and services sectors. The downward trend in the quantum of credit allocation to small scale enterprises may have limited the performance of Small Scale Enterprises who are estimated to account for about 70 percent of industrial employment and a significant portion of the Nigeria output of goods and services. It is therefore recommended that the current financial and technical limitations and harsh macroeconomic environment be removed in order to fully harness the potentialities of SSE in Nigeria’s economic development and improved standard of living.

Keywords: Structure, Gross Domestic Product, Small Scale Enterprises, Loans.