Authors: Victoria Oluwatoyin Foye; Oluwasegun Olawale Benjamin
Addresses: Department of Economics, Faculty of Economics and Management Sciences, University of Ibadan, Nigeria ' Department of Economics, Faculty of Economics and Management Sciences, University of Ibadan, Nigeria
Abstract: This paper analyses the dynamic relationship between climate change, technology and manufacturing sector growth in Nigeria from 1970-2016 using climate augmented Mankiw-Romer-Weil theory within a structural vector autoregressive (SVAR) model. Restrictions are imposed accordingly, and the results reveal that the manufacturing sector growth and technology respond negatively to positive shocks in climate. Also, the variations in manufacturing sector performance and technology are accounted for by technology and climate shocks at 21.97% and 10.11%, respectively. Hence, we conclude that climate change inhibits technology and manufacturing sector growth in Nigeria, and this lowers labour and capital productivity in the real sector, which is consequent on economic growth and sustainable development. Therefore, the Nigerian Government should prevail on the manufacturing firms to prioritise investment that is not responsive to climate change and simultaneously attend to the challenge of technological backwardness by improving research and development in Nigeria.
Keywords: climate change; dynamic relationship; manufacturing sector growth; technology.
International Journal of Sustainable Economy, 2021 Vol.13 No.3, pp.236 - 260
Received: 19 Sep 2020
Accepted: 06 Jan 2021
Published online: 19 Jul 2021 *