Background of the Study :
Import substitution industrialization (ISI) is a development strategy that encourages domestic production to replace imported goods. In Kaduna State, from 2000 to 2020, government policies promoting ISI have aimed to stimulate local industries, reduce foreign dependency, and boost economic self-reliance (Uche, 2023). By providing incentives for local manufacturing, such as tax breaks and subsidies, ISI is designed to foster industrial growth and generate employment. Empirical studies have shown that successful ISI policies can enhance domestic production capabilities, although challenges like inefficiencies and protectionist measures may also lead to reduced competitiveness in the global market (Adeniyi, 2024). This study assesses the economic implications of ISI policies in Kaduna State by examining industrial output, employment trends, and the trade balance. Interviews with policymakers and industry representatives provide further insight into the effectiveness of these policies. The research seeks to determine whether ISI has led to sustainable industrial growth and reduced import reliance, while also identifying areas for policy improvement (Chinwe, 2025).
Statement of the Problem
Despite efforts to promote domestic production through ISI, Kaduna State continues to experience challenges in achieving significant industrial growth. Issues such as inefficiencies, limited technology transfer, and market distortions have hampered the success of import substitution strategies (Uche, 2023). The gap between policy goals and actual industrial performance raises questions about the long-term viability of ISI in the region. This study aims to investigate the determinants that limit the effectiveness of ISI and assess its overall economic implications, thereby providing a basis for refining industrial policies to better support domestic production and reduce import dependency.
Objectives of the Study:
1. To evaluate the impact of ISI policies on industrial output.
2. To identify factors limiting the success of import substitution.
3. To recommend policy improvements for enhancing domestic production.
Research Questions:
1. How have ISI policies affected industrial growth in Kaduna State?
2. What are the key barriers to effective import substitution?
3. What measures can improve the success of ISI?
Research Hypotheses:
1. ISI policies positively influence domestic industrial production.
2. Inefficiencies hinder the effectiveness of import substitution.
3. Policy reforms can enhance the performance of local industries.
Significance of the Study (100 words):
This study is significant as it evaluates the economic implications of ISI policies in Kaduna State, offering insights into their impact on domestic industrial growth and import dependency. Its findings will assist policymakers in refining strategies to promote sustainable industrial development and enhance economic self-reliance (Uche, 2023).
Scope and Limitations of the Study:
The study is limited to the evaluation of ISI policies in Kaduna State from 2000 to 2020. It focuses on manufacturing and does not extend to service sectors or other regions.
Definitions of Terms:
1. Import Substitution Industrialization (ISI): A strategy aimed at reducing reliance on imports by promoting local production.
2. Domestic Production: The production of goods within the country.
3. Trade Balance: The difference between the value of exports and imports.
Background of the study
Technological advancement in communication technologies has continued to eulogize television as a powerful medium...
Background of the Study
Automated Teller Systems (ATS) are a critical component in modernizing business banking by offering...
Background of the Study
Traditional medicine has been an integral part of African healthcare systems for centuries, providing alternative...
ABSTRACT
Transportation is a bas...
Background of the Study
The rapid digitalization of financial services has made fintech firms highly susceptible to cyberattacks. Cyberat...
Background of the Study
The retention of healthcare workers is a major challenge in rural hospitals, wh...
Background of the Study
Social media marketing has revolutionized the way companies communicate with consumers, offering a dynamic platfo...
ABSTRACT:
This research examines the relationship between financial reporting transparency and stakehol...
BACKGROUND OF STUDY
Advertisements have long been recognized as a powerful tool for tempting and persua...
Background of the study:
Body temperature regulation is a critical physiological process that enables huma...