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Full Project – THE IMPACT OF MACROECONOMIC POLICY ON THE GROWTH AND DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA

Full Project – THE IMPACT OF MACROECONOMIC POLICY ON THE GROWTH AND DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA

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Full Project – THE IMPACT OF MACROECONOMIC POLICY ON THE GROWTH AND DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA

 

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ABSTRACT

The research study is directed towards the Impact of Macroeconomic Policy on the growth and development of Small Scale Industry in Nigeria using macroeconomic variables such as Gross Domestic Product (GDP), Small and Medium Scale Enterprises Loan (SMEL), Investment (INV), Inflation Rate (INF) and also interest rate.

This research was analyzed by explaining with some economic models being developed by some Industrious economic scholars.

The research recommend that government should invest early and ambitiously in basic equity and the focus of the conventional financial institutions should be on large scale farmer which must go beyond agricultural insurance, guarantee schemes and sectoral allocation. It also outline what farmers ought to enjoy and fiscal policy measures which the government should make use of an the needs for government to renew the incentives to banks in granting credit to rural dwellers,

BACKGROUND OF STUDY

1.0     INTRODUCTION

We can define Macroeconomics as the economy in terms of the total amount of goods and services produced, total income earned the level of employment of productive resources, and the general behaviour of prices.

It is also the study of economics in terms of the whole systems, especially with reference to general levels of output and income and to the interrelations among sectors within the economy. !

In the field of economics that studies the behaviour of the aggregate economy, Macroeconomics examines economy wide phenomena such as changes in Unemployment, National Income, Rate of Growth, Gross Domestic Product, Inflation and Price Levels.

In order to try to avoid major economics shocks, such as the great depression, governments make adjustments through policy changes which hope will succeed in stabilizing the economy.

Government believes that the successes of these adjustments are necessary to maintain stability and continue growth. This economic management is achieved through, two types of strategies monetary fiscal policy.

Macroeconomics policy refers to the instruments by which a government tries to regulate or modify the economic affairs of the count in keeping  with certain objectives. In order words, it attempts to assess the behaviour of the economy as a whole and to seek ways in which it aggregate performance might be improved. These are achieved through certain instrument and objectives of macroeconomic policy.

Small scale industries are the most dependable source of growth and sustainers of the National economic development all over the world. The small scale industries are the major employers of labour than the major industries.

The fall scale sector has played a very important role in the socio­economic development of the country during the past 50 years. It has significantly contributed to the overall growth in team of the Gross Domestic Product (GDP), employment generation and exports, The performance of small scale sector, therefore, has a direct impact on the growth of the overall economy.

On realizing the importance of small scale industries, the organized private sector agitates for government promotion of the sector in order to reposition the nation’s economy.

Global efforts has been made by the Central Bank, Federal Ministry of Finance and other financial institutions for the need to promote the small scale Industry in Nigeria as a means of economic growth. But a lot of factors have been a barrier to the growing of the small scale industries in Nigeria.

1.1    STATEMENT OF THE PROBLEM

According to Stephen, 1997, to judge government record, we must obviously look at the economic outcome. The problems are not usually present outcomes but the outcome of past regimes. Some questions that will be looked into in this work are:

v To what extent has Nigeria macroeconomic policy and government schemes imparted small scales industry !

v Has it been done outright or rather relegated to insignificance?

1.2    PURPOSE OF THE STUDY

The rr1ain purpose of this study is to investigate the impact of various macroeconomic policies on the growth and development of small scale industries in Nigeria.

1.3    OBJECTIVES OF THE STUDY

1.       To critically evaluate the nature of small scale industry in Nigeria.

2.       To determine the various causes of undeveloped nature of mall scale industries in Nigeria.

3.       To investigate the factors hindering the growth of small scale industries   in Nigeria.

4.       The impact of macroeconomic policy to the growth and development of  small scale industry

5.       To make suitable recommendations and appropriate policy on how best to promote the small scale industry

1.4    RESEARCH QUESTION

1.       What is the effect of macroeconomic policy on the growth and development of small scale industry in Nigeria?

2.       Can investment in macroeconomic variables lead to the growth and development of small scale industry in Nigeria?

3.       Can the growth and development of small scale industries e used as a measuring stick for the efficiency of macroeconomic policy?

1.5    STATEMENT OF RESEARCH HYPOTHESIS

These are test to be carried out in the course of this study.

Ho:    Null Hypothesis – Monetary Policy strong effect on small scale industry

Hi:    Alternative Hypothesis – The government fiscal policy d influence a small scale

1.6    SIGNIFICANCE OF THE STUDY

The purpose of this study is to find out the problems facing the small scale industry in Nigeria, to enable the policy maker and government find the appropriate policy and scheme that will boast small scale industry in order to achieve the macroeconomic objectives.

The need for this study arose from the fact that the situation of small scale industries in Nigeria are not encouraging at all, in the sense that they are neglected and abandoned by the Nigeria government.

The reason for this study is also to examine to which the macroeconomic variables such as, Banking Policy, Monetary Policy, Lending Policy of both Commercial and Central Bank and also the performance of SMIES affect the growth and development of small scale industry.

In understanding this study, it is targeted that it will be to the utmost benefit of not only the small scale industries but to the whole economy, it will also help policy makers to formulate affective policies concerning small and medium scale industry in Nigeria. It is also anticipated that his research study Will provide a basis for further research and investigation

1.7    SCOPE AND COVERAGE OF STUDY

The study will be limited to cover the macroeconomic policy and government initiatives towards the growth and development of small and medium scale industry. It will be limited to lending policy of Central Bank, Monetary Policy, Commercial Policy, Small and Medium Industries Equity investment Scheme (SMIEIS) as they affect growth and development of small and medium scale industry in Nigeria. !

1.8    RESEARCH METHODOLOGY

A research is an enquiry into the unknown, usually, it is a specific objective or phenomenon of interest to the researcher. However, the search must be systematic and objective for it to be called a research (Nnadozie 1995). There are various methods of research that have been identified for the year.

1.9    LIMITATIONS OF THE STUDY

Virtually all studies have some draw back on them and this is no exception but the limitations could not stop the study from being conducted. The limitations encountered in the course of this study are listed below:

v The cost of carrying out the study was a major set back

v The collection of data needed was difficult as most libraries secure their books.

v Inadequate time since the researcher has to shuttle from lectures to sources of data. This posed a problem during the course of study

They include: Historical, Description, Experimental, Econometrics, Qualitative and Operational Research Techniques (Nwaobi 1998).

In the course of the research, I intend to put to use simple time series model to estimate the relative effect of Changes identified rnacro-economic policy variables on growth and development small scale industry in Nigeria.

The second aspect of the methodology will be econometric analysis. This will generate data directly from fairly representative sample of small scale industry in Nigeria. Data that is generated from the field wit be used to compliment the empirical findings from specified model.

1.10 ORGANIZATION OF THE STUDY

This study has been well organized to allow for easy reading and assimi1ation of the whole work done. It has been broken down into five chapters.

In the first chapter, the study is introduced and an insight to the study is being given. Chapter tells us about the literature review of the whole study, the researcher now view the extent to which other scholars have reached on the same study bringing in other relevant ideas of mine to support their.

This takes the researcher to chapter three which is t e structural composition of the research study. This takes the researcher to chapter

four which is the methodology. Here the method of research used will be explained and result will be analyzed. The chapter five brings he research to the conclusion of the study with recommendation for further study and policy brief.

 

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Full Project – THE IMPACT OF MACROECONOMIC POLICY ON THE GROWTH AND DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA

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RESEARCH PROJECT CONTENTS
CHAPTER ONE - INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
CHAPETR TWO – LITERATURE REVIEW
2.1. Introduction
2.2. Conceptual Framework
2.3. Theoretical Framework
2.4 Empirical Review
CHAPETR THREE - RESEARCH METHODOLOGY
3.1 Research Design
3.2 Study Area
3.3 Population of the Study
3.4 Sample Size and Sampling Technique
3.5 Instrument for Data Collection
3.6 Validity of the Instrument
3.7 Reliability of the Instrument
3.8 Method of Data Collection
3.9 Method of Data Analysis
3.9 Method of Data Analysis
3.10 Ethical Considerations
CHAPTER FOUR - DATA PRESENTATION AND ANALYSIS
4.1. Introduction
4.2 Demographic Profiles of Respondents
4.2 Research Questions
4.3. Testing of Research Hypothesis
4.4 Discussion of Findings
CHAPTER FIVE – SUMMARY, CONCLUSION & RECOMMENDATIONS
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
REFERENCES
APPENDIX


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