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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Manufacturing Performance during Adjustment: Evidence from Nigeria
Authors:Danju, DanbalaISNI
Weiss, JohnISNI
Year:1997
Periodical:Development Policy Review
Volume:15
Issue:4
Period:December
Pages:357-369
Language:English
Geographic term:Nigeria
Subjects:industry
economic policy
trade policy
Economics and Trade
Development and Technology
Labor and Employment
External link:https://doi.org/10.1111/1467-7679.00042
Abstract:Like many other countries in sub-Saharan Africa, Nigeria introduced a number of significant changes in economic policy during the 1980s. This article provides evidence on the efficiency of manufacturing in Nigeria at a point in time in the late 1980s. It also explains the behaviour of firms in response to the modest liberalization of foreign trade that occurred over the period 1987-1989. The paper draws on the results of an enterprise survey conducted among formal manufacturing establishments with 10 employees or more, who were in operation both before 1986 and at the time of the survey in 1992/1993. Of 71 firms responding only 31 provided data adequate to conduct a meaningful analysis of their performance. Nonetheless, the data still allow the testing of some basic hypotheses on the effect of the reforms. In terms of enterprise behaviour, after the modest liberalization of 1986, using the indicators of growth of labour productivity and change in price-cost margin, the paper finds support for the view that it is the more competitive and less protected firms which respond most strongly in the face of adjustment programmes and trade reform. Hence there is some support for the view that competitive policies, in terms of encouragement to both foreign and domestic competition, can improve the efficiency of African enterprises. Bibliogr., notes, ref.
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