The Synergy amongst Manufacturing Sector, Agricultural Sector, Services and Gross Domestic Product 1980 to 2020

Abstract

The study evaluated the synergy amongst the manufacturing sector, agricultural sector, service sector, and the gross domestic product between 1980 and 2020. The aim is to assess the inter-relationship amongst them for the period of 40 years. A unit root test and cointegration test was carried on the data to determine the level of stationarity and long-run effect. VAR (impulse response function) and Toda-Yamamoto methods of data analysis were carried out. The result indicated no relationship amongst all the variables except gross domestic product to manufacturing which has a relationship, but manufacturing has no influence over the gross domestic product based on the Toda-Yamamoto. It is evidenced that in Nigeria, the interdependence among GDP, agricultural sector, manufacturing sector and the service sector does not really exist based on result in which there is proven significant relationship and causality. This study, therefore, recommended that a strong nexus policy be made and implemented to the later to ensure that the formerly existing nexus among the sectors will be restored.