Nigerian Construction Sector, Domestic Fixed Capital Formation and Gross Domestic Product of Nigeria

  • Ayodele Najimu Saka Department of Quantity Surveying, Federal University of Technology, Akure, Nigeria.
  • Deji Ogunsemi Department of Quantity Surveying, Federal University of Technology, Akure, Nigeria.
Keywords: Construction Sector, Domestic Fixed Capital Formation, Gross Domestic Product, Nigeria

Abstract

Domestic Fixed Capital (DFC) is one of the most fundamental requirements for economic diversification. The slow growth of DFC has been identified as one of the most important challenges facing sub Saharan Africa. The study empirically examined the causal relationship between the Nigerian Construction Sector (NCS) output and Gross Fixed Capital Formation (GFCF) and the Gross Domestic Product (GDP) using Nigerian Time Series Data (TSD) from 1970 through 2013. The empirical investigation is carried out using vector error correction Model (VECM) framework. Data is sourced from United Nations Statistic Department (UNSD). The results of the co-integration test suggest the existence of a long-run relationship between the NCS, GFCF and GDP.  The results show that the NCS positively causes GFCF and GDP growth. The finding implies that Nigeria can accelerate its GFCF and GDP growth by increasing investment in the NCS.

References

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Published
2020-05-05
How to Cite
Saka, A. N., & Ogunsemi, D. (2020). Nigerian Construction Sector, Domestic Fixed Capital Formation and Gross Domestic Product of Nigeria. Journal of Construction Innovation and Cost Management, 1(1), 115-131. Retrieved from https://jcicm.unilag.edu.ng/article/view/2759