ABSTRACT
The research study is directed towards the Impact of Macroeconomic Policy on the growth and development of Small Scale Industry in Nigeria using macroeconomic variables such as Gross Domestic Product (GDP), Small and Medium Scale Enterprises Loan (SMEL), Investment (INV), Inflation Rate (INF) and also interest rate.
This research was analyzed by explaining with some economic models being developed by some Industrious economic scholars.
The research recommend that government should invest early and ambitiously in basic equity and the focus of the conventional financial institutions should be on large scale farmer which must go beyond agricultural insurance, guarantee schemes and sectoral allocation. It also outline what farmers ought to enjoy and fiscal policy measures which the government should make use of an the needs for government to renew the incentives to banks in granting credit to rural dwellers,
BACKGROUND OF STUDY
1.0 INTRODUCTION
We can define Macroeconomics as the economy in terms of the total amount of goods and services produced, total income earned the level of employment of productive resources, and the general behaviour of prices.
It is also the study of economics in terms of the whole systems, especially with reference to general levels of output and income and to the interrelations among sectors within the economy. !
In the field of economics that studies the behaviour of the aggregate economy, Macroeconomics examines economy wide phenomena such as changes in Unemployment, National Income, Rate of Growth, Gross Domestic Product, Inflation and Price Levels.
In order to try to avoid major economics shocks, such as the great depression, governments make adjustments through policy changes which hope will succeed in stabilizing the economy.
Government believes that the successes of these adjustments are necessary to maintain stability and continue growth. This economic management is achieved through, two types of strategies monetary fiscal policy.
Macroeconomics policy refers to the instruments by which a government tries to regulate or modify the economic affairs of the count in keeping with certain objectives. In order words, it attempts to assess the behaviour of the economy as a whole and to seek ways in which it aggregate performance might be improved. These are achieved through certain instrument and objectives of macroeconomic policy.
Small scale industries are the most dependable source of growth and sustainers of the National economic development all over the world. The small scale industries are the major employers of labour than the major industries.
The fall scale sector has played a very important role in the socioeconomic development of the country during the past 50 years. It has significantly contributed to the overall growth in team of the Gross Domestic Product (GDP), employment generation and exports, The performance of small scale sector, therefore, has a direct impact on the growth of the overall economy.
On realizing the importance of small scale industries, the organized private sector agitates for government promotion of the sector in order to reposition the nation's economy.
Global efforts has been made by the Central Bank, Federal Ministry of Finance and other financial institutions for the need to promote the small scale Industry in Nigeria as a means of economic growth. But a lot of factors have been a barrier to the growing of the small scale industries in Nigeria.
1.1 STATEMENT OF THE PROBLEM
According to Stephen, 1997, to judge government record, we must obviously look at the economic outcome. The problems are not usually present outcomes but the outcome of past regimes. Some questions that will be looked into in this work are:
v To what extent has Nigeria macroeconomic policy and government schemes imparted small scales industry !
v Has it been done outright or rather relegated to insignificance?
1.2 PURPOSE OF THE STUDY
The rr1ain purpose of this study is to investigate the impact of various macroeconomic policies on the growth and development of small scale industries in Nigeria.
1.3 OBJECTIVES OF THE STUDY
1. To critically evaluate the nature of small scale industry in Nigeria.
2. To determine the various causes of undeveloped nature of mall scale industries in Nigeria.
3. To investigate the factors hindering the growth of small scale industries in Nigeria.
4. The impact of macroeconomic policy to the growth and development of small scale industry
5. To make suitable recommendations and appropriate policy on how best to promote the small scale industry
1.4 RESEARCH QUESTION
1. What is the effect of macroeconomic policy on the growth and development of small scale industry in Nigeria?
2. Can investment in macroeconomic variables lead to the growth and development of small scale industry in Nigeria?
3. Can the growth and development of small scale industries e used as a measuring stick for the efficiency of macroeconomic policy?
1.5 STATEMENT OF RESEARCH HYPOTHESIS
These are test to be carried out in the course of this study.
Ho: Null Hypothesis - Monetary Policy strong effect on small scale industry
Hi: Alternative Hypothesis - The government fiscal policy d influence a small scale
1.6 SIGNIFICANCE OF THE STUDY
The purpose of this study is to find out the problems facing the small scale industry in Nigeria, to enable the policy maker and government find the appropriate policy and scheme that will boast small scale industry in order to achieve the macroeconomic objectives.
The need for this study arose from the fact that the situation of small scale industries in Nigeria are not encouraging at all, in the sense that they are neglected and abandoned by the Nigeria government.
The reason for this study is also to examine to which the macroeconomic variables such as, Banking Policy, Monetary Policy, Lending Policy of both Commercial and Central Bank and also the performance of SMIES affect the growth and development of small scale industry.
In understanding this study, it is targeted that it will be to the utmost benefit of not only the small scale industries but to the whole economy, it will also help policy makers to formulate affective policies concerning small and medium scale industry in Nigeria. It is also anticipated that his research study Will provide a basis for further research and investigation
1.7 SCOPE AND COVERAGE OF STUDY
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