Entrepreneurial Productivity: Sectoral Contribution To The GDP Of A Developing Economy

Abstract

Using macroeconomic data for the period 1992-2004, this paper applies Granger’s causality adjusted regression model to examine the sectoral contribution to the gross domestic product, as a proxy for entrepreneurial productivity in Nigeria. The study found that only agricultural production and industrial/service output Granger caused changes in GDP, whereas oil production, capacity utilization and non-oil exports had no causality with GDP. The study concludes that oil output and non-oil exports are not significantly contributing to the economy and manufacturing capacity is grossly underutilized. The study recommends increased promotion of non-oil export; an improved operating financial environment; and, greater Nigerian content in the oil sector for increased entrepreneurial productivity.