gender differential paper IJCRB

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
The inclusion of agricultural output, manufacturing output and government expenditure in this work is an
improvement over Ayadi’s (2003) model.
The equation of estimation in this study is specified as follows:
Manuf = F (EXTD, DTSP, GEXPD) ………………………………………… 6
Where
Manuf = is the manufacturing output of Nigeria
f is a functional notation
EXTD is the external debt of Nigeria
DTSP is the debt service payment of Nigeria
GEXPD is the government expenditure of Nigeria
Equation 6 shows that the level of manufacturing output in Nigeria is a function of external debt (EXTD), debt
service payment (DTSP) and government expenditure (GEXPD).
The equation (6) is transform to operational form.
Manuf = β 0 + β 1 EXTD + β 2 DTSP + β 3 GEXPD + U t ………………………. 7
Where
β 0 is the constant term
β 1 , β 2 , β 3 are the coefficients of the explanatory variables.
U t is the stochastic error term.
Since the equation 7 have unit root, it can further be expressed in first difference form as:
∆Manuf = β 0 + β 1 ∆EXTD + β 2 DTSP + β 3 ∆GEXPD + U t ………………….8
Where ∆ before the variable represent the first difference of the variable.
Equation (8) did not address long –run decision making, the procedure of differencing when
variables are not stationary result in loss of valuable long run information in the data
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