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Research Article | Open Access
Volume 6 | Issue 9 | Year 2019 | Article Id. IJEMS-V6I9P101 | DOI : https://doi.org/10.14445/23939125/IJEMS-V6I9P101

Analysis of Firm Dynamics by Productivity: Evidence from Nigerian Manufacturing and Service Sectors

Tobechi F. Agbanike , Michael O. Enyoghasim, Ikwor O. Ogbonnaya, Nkama N. Otta, Chima N. Durueke , Patra E. Awani

Citation :

Tobechi F. Agbanike , Michael O. Enyoghasim, Ikwor O. Ogbonnaya, Nkama N. Otta, Chima N. Durueke , Patra E. Awani, "Analysis of Firm Dynamics by Productivity: Evidence from Nigerian Manufacturing and Service Sectors," International Journal of Economics and Management Studies, vol. 6, no. 9, pp. 1-9, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I9P101

Abstract

Using the World Bank Enterprise Survey data of 2014 which covered a total of 2,676 firms across Nigeria, this study analyzes productivity of Nigerian manufacturing and service firms. Specifically, it examines firm characteristics responsible for productivity and compares the productivity of manufacturing and service sectors. It adopts labour productivity as a measure of productivity and defines labour productivity as the ratio of average monthly sales to the number of workers. The method of Ordinary Least Squares (OLS) regression analysis was used to analyze the relationship between productivity and its determinants. The result suggests that there is a significant return to wages which implies that adequate remuneration motivates worker’s productivity, and smaller firms are more productive than bigger firms. However, there is no significant difference between productivity in the manufacturing and service sectors.

Keywords

Productivity, manufacturing, service, firm, sector, Nigeria.

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