FDI and Economic Growth in Nigeria: A Co-integration Analysis

Olatunji, Lateef Ademola; Shahid, Muhammad Sadiq

doi:10.5296/ber.v5i1.6647

Cited by 13 publications

(12 citation statements)

References 30 publications

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“…Trade openness as defined by the export plus import share of GDP though was not statistically significant at the 5% level but still has the potential to make growth inclusive. This is in agreement with Olatunji and Shahid (2015) when they revealed that the transfer of technology to less developed countries from developed nations lead to an increase in the productivity factor and that economic growth was facilitated by trade openness.…”

Section: Co-integration Resultssupporting

confidence: 89%

Gender Inequality and its Implication for Inclusive Growth in Nigeria from 1980 to 2018

Lawanson

Umar

2019

Asian Economic and Financial Review

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Earlier empirical studies on inequality concentrated more on its effects on economic growth with limited attention on its consequences for inclusive growth. Nigeria on average has achieved its annual target growth rate. However, stark realities of inequality, unemployment and poverty amid growth point to the need for inclusive growth. This paper examined the gender inequality implications for inclusive growth in Nigeria from 1980 to 2018 using data from the World Development Indicators (2018), National Bureau of Statistics ( 2018) and CBN Statistical Bulletin (2018).This study used the ARDL cointegration method in the analysis and the results showed that gender inequality in education and employment both in the short and in the long term portend grave consequences for inclusive growth in Nigeria. Government should take appropriate policy measures by ensuring equal access to education and employment for both men and women to minimize economic losses. Attaining inclusive growth in Nigeria is unlikely without gender equality. Therefore, this paper recommends that gender equality should be included in the National Development Agenda and be backed by policies that will enforce its operation both in public and private sectors at the local, state and federal government levels.Contribution/ Originality: This study contributes to existing literature by examining the gender inequalityinclusive growth nexus. It used a new methodology (ARDL) in its analysis and derived a new equation for inclusive growth. It's one of few studies that investigated inequality-inclusive growth relationships in Nigeria. Inclusive growth is unlikely without gender equality.

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Section: Co-integration Resultssupporting

confidence: 89%

Gender Inequality and its Implication for Inclusive Growth in Nigeria from 1980 to 2018

Lawanson

Umar

2019

Asian Economic and Financial Review

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“…To begin with the trade and economic growth nexus, Ekpo (1995) obtained an inverse relationship between openness to trade and economic growth in Nigeria within a period of 23 years starting from 1970 to 1992. Oladipo (1998) while estimating the degree of relationship between openness to trade and growth in Nigeria 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 FDI AS % OF GDP applied quarterly data spanning from 1970 to 1996 with export to GDP ratio and trade to GDP ratio as proxies for trade openness. He obtained a positive correlation in the former but on the contrary, the later proxy produced a negative result.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Reconsidering trade and investment-led growth hypothesis: New evidence from Nigerian economy

Çoban¹,

Onifade²,

Yussif³

et al. 2020

Journal of International Studies

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The need to revisit the trade and investment-led growth hypothesis in the case of Nigerian economy has become pertinent following the recent record drop of 15% in FDI inflows to West Africa. This fall in FDI flow to the region has been primarily attributed to the abysmal performance of Nigeria in attracting FDI as the largest economy in the sub-region despite an average rise in the rate of FDI flow to Africa as a continent at large. In this study, the trade and foreign direct investment-led growth hypothesis were revisited in the case of Nigerian economy. Our empirical findings provide evidence to support the trade-led growth hypothesis as trade measures were found to be significantly and positively impacting real economic growth in the reviewed period. In particular, the exportled growth hypothesis was upheld by the results. On the other hand, we have found mixed evidence on the investment-led growth hypothesis as only domestic investments demonstrated a significant positive impact on economic growth while FDI was not significant for economic growth in the country for the period

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“…The research (ibid) found that the effect is stronger for host countries with a higher level of institutional capability -as measured by the degree of property rights protection and bureaucratic efficiency in the host country. A more contemporary study by Olatunji and Shahid (2015), found a short-run dynamic relationship between FDI and economic growth, and suggested that the long-run relationship can be achieved through infrastructure development and political stability. However, extant literature also reveals that the main deterrents to attracting FDI in developing countries include: governance failure, problems of policy credibility, macroeconomic policy failures and poor liberalization policies (Anyanwu, 2011;Alfaro et al, 2004;Asiedu, 2003).…”

Section: Introductionmentioning

confidence: 99%

Short run causal relationship between foreign direct investment (FDI) and infrastructure development

Owusu-Manu

Edwards

Mohammed

et al. 2019

JEDT

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Purpose Foreign direct investment (FDI) flows for infrastructure development have grown in volume to become more widely dispersed among home (outward investor) and host (recipient) countries. This paper aims to explore the short-run causal relationship between FDI and infrastructure development in the developing country of Ghana. Design/methodology/approach A two-stage least squares estimation method was adopted where FDI was endogenized, and all variables were in constant prices. Stationarity tests were performed on the annualized log difference of variables using augmented Dickey–Fuller test (ADF). Findings Results reveal a positive and significant relationship between FDI and infrastructure but a negative and significant relationship between FDI and GDP and FDI and openness. GDP growth also has a long-run negative relationship with FDI inflows. Originality/value The paper’s contribution to knowledge is two-fold. First, it examines the short run effect of FDI upon the Ghanaian economy and how market shocks to FDI and infrastructure development can be ameliorated. Second, it illustrates that government policymakers should prioritize development that requires FDI and ensure that the local market is not excessively open to foreign exploitation. Future work is required to further investigate international capital flow and its impact upon other developing nations.

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FDI and Economic Growth in Nigeria: A Co-integration Analysis

Cited by 13 publications

References 30 publications

Gender Inequality and its Implication for Inclusive Growth in Nigeria from 1980 to 2018

Gender Inequality and its Implication for Inclusive Growth in Nigeria from 1980 to 2018

Reconsidering trade and investment-led growth hypothesis: New evidence from Nigerian economy

Short run causal relationship between foreign direct investment (FDI) and infrastructure development

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