THE IMPACT OF MACROECONOMIC POLICY ON THE GROWTH AND DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)
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.
