Imperatives of Economic Fluctuations in the Growth and Performance of Nigeria Construction Sector

摘要

The study investigated the impact of economic fluctuations on the growth and performance of construction sector in Nigerian. Quarterly published data from the National Bureau of Statistics (NBS) on construction sector and aggregate GDP from 2010 to 2015 were used. The study used econometric techniques such as unit root test, cointegration test, Granger causality test as well as ordinary least square regression method to establish the stationarity, causality and relationships between the aggregate GDP and the construction sector growth. The result showed that the series were stationary at the level form and were from common trend and in the same order of zero I(0). It also revealed existence of a long–term equilibrium contemporaneous relationship between the variables from the model, which produced two cointegration equations. A counter cyclicality (negative relationship) (R = -0.088) which was not significant was also established between the GDP and construction sector. The R~(2) value (0.007804) indicated that only about 0.78% proportion of variation in the GDP growth can be explained by the construction growth. Although a relationship model between GDP growths and construction growth was established, it was found that the growth rate of construction sector is more volatile compared to that of GDP as a whole. The study then recommended for positive construction policies as construction sector has the potentials for improving and growing the national economy and recovering economy from recession.