Estimation of Informal Sector of the Nigerian Construction Industry

Authors

  • Ojo O. J.  Department of Project Management Technology, Federal University of Technology, Akure, Ondo State, Nigeria
  • Yusuf B. A.  Department of Building Technology, The Polytechnic, Ibadan, Oyo State, Nigeria
  • Aremu J. A.  Department of Building Technology, The Oke-Ogun Polytechnic, Saki, Oyo State, Nigeria

DOI:

https://doi.org/10.32628/IJSRSET207235

Keywords:

Estimation, Construction Industry, Informal Sector, Cement Consumption Approach, Instrumental Variable

Abstract

The study estimated the output of informal sector of the Nigerian Cement Industry through the consumption of cement by the Nigerian Construction industry. The research was conducted using secondary data. The study adopted the statistical model of informal sector estimation, Nigeria construction industry being cement intensive, cement consumption approach was used for the estimation of the informal sector of the industry by using annual cement consumption as an independent variable against the annual construction output in a time series regression analysis, treating the informal sector output as an omitted variable in the ordinary least square method of estimation. Annual value added tax (VAT) pool data set was chosen as an instrumental variable. Using the instrumental variable method of estimation, the informal sector proportion of the Nigeria construction industry was therefore estimated. The study concluded that the informal sector of the Nigerian construction industry is 4.07 percent of the industry’s output.

References

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2020-04-30

Issue

Volume 7, Issue 2, March-April-2020

Section

Research Articles

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How to Cite

[1]
Ojo O. J., Yusuf B. A., Aremu J. A. "Estimation of Informal Sector of the Nigerian Construction Industry " International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 7, Issue 2, pp.203-208, March-April-2020. Available at doi : https://doi.org/10.32628/IJSRSET207235