Abstract

This study examined the relationship between linkage industries and economic development of the informal sector in Ikot Ekpene Local Government Area, Akwa Ibom State. The study specifically examined the relationship between local economic linkages and economic development, assessed the influence of productive capacity comprising finance, skills, technology and infrastructure, and determined the influence of the institutional environment on informal enterprise development. A cross-sectional survey research design was adopted. The population comprised operators of identifiable informal enterprises in the study area, while a sample of 384 respondents was determined using Cochran’s formula. Data were collected through a structured questionnaire and analysed using descriptive statistics, Pearson Product-Moment Correlation and multiple regression analysis at the 0.05 level of significance. Illustratively, 372 completed questionnaires were used for analysis, representing a 96.9% response rate. The findings revealed a strong positive and statistically significant relationship between local economic linkages and economic development (r = 0.682, p < 0.05). Productive capacity also had a significant positive influence on economic development (β = 0.594, R² = 0.353, p < 0.05), indicating that finance, skills, technology and infrastructure explained 35.3% of the variation in economic development. Similarly, institutional environment significantly influenced economic development (β = 0.471, R² = 0.222, p < 0.05). The study concluded that strengthening local economic linkages, productive capacity and institutional support is essential for improving the performance and development contribution of informal enterprises in Ikot Ekpene. It recommended improved access to finance, infrastructure, skills development, technology, supportive regulations and stronger business associations