Government Capital Expenditure, Foreign Direct Investment, and Economic Growth Relationship in Nigeria

Kolawole, Bashir Olayinka; Odubunmi, Sunkanmi Ayoola

doi:10.5901/mjss.2015.v6n4s3p444

Cited by 4 publications

(3 citation statements)

References 28 publications

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“…Also, Muse, Olorunleke and Alimi (2013) Also, over the period from 1980 to 2012, Kolawole, Omobitan and Yaqub (2015) established a positively signifi cant relation between government spending on health and per capita growth in the country, as against a negatively signifi cant association between government spending on education and per capita GDP. For the same period, Kolawole and Odubunmi (2015) found that government capital spending significantly impacted positively on economic growth in Nigeria.…”

Section: Review Of Selected Previous Studies On Government Spending Amentioning

confidence: 93%

Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

Kolawole

2016

Zagreb International Review of Economics and Business

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Abstract:This study has investigated the relationship between government spending and inclusive growth in Nigeria over the period 1995 to 2014. Specifi cally, it examined how, and to what extent, government spending on education, government spending on health, economic freedom, public resource use, and real GDP growth rate have impacted on inclusive growth in the country. It used the Dickey-Fuller GLS unit root test to ascertain the order of integration of the series. Consequently, through the Auto-Regressive Distributed Lag (ARDL) bound testing technique, the study found that in the long-run government spending on health, economic freedom, public resource use and real GDP growth rate had signifi cantly positive infl uence on inclusive growth. In the short-run, however, only real GDP impacted signifi cantly on inclusive growth while other variables were not signifi cant in causing inclusive growth. Thus, in conclusion, government spending in the form of redistributive spending on health propelled inclusive growth in Nigeria.

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Section: Review Of Selected Previous Studies On Government Spending Amentioning

confidence: 93%

Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

Kolawole

2016

Zagreb International Review of Economics and Business

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“…, 2021). In EPU-FDI context , Ajuwon et al. (2013)'s research with data from 1970 to 2008 and based on Co-integration approach revealed that policy uncertainty was unstable and affected foreign investments adversely in the short run and long run.…”

Section: Literature Reviewmentioning

confidence: 99%

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

Zaria

Tuyon²

2023

IJSE

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PurposeApart from providing theoretical clarity, the present research aims to validate empirically that the EPU will be adversely affecting these key macroeconomic variables and that managing EPU matters for economic policymaking in Nigeria.Design/methodology/approachA dynamic autoregressive distributed lag regression model is employed to analyse the relationship from 1990 to 2020. Based on the theory of multiplier effect, the analysis could examine the positive and negative changes in policy uncertainty, as well as the reliability in macroeconomic activities such as unemployment, infrastructure development and foreign direct investment inflows.FindingsThe findings revealed EPU is cointegrated with the key economic variables in focus. Further, the negative impact of EPU on corporate investment in FDI and positive impact of EPU on unemployment confirm for both short and long-run. However, the impact of EPU on government investment in infrastructure development is found to be positive which does not confirm the expected hypothesis.Practical implicationsDynamic relationship between policy uncertainty and macroeconomic activities in Nigeria seems to exist. Taking risky decisions has impact and causing a high unemployment rate, poor infrastructural development and lower foreign direct investment inflows in the country.Originality/valuePolicy uncertainty in Nigeria is determining. Despite that, very little research found that rising uncertainty issues may significantly affect unemployment, investment in infrastructure and foreign direct investment inflows adversely. Therefore, policy uncertainty is an open space for economic activities to thrive in Nigeria, especially unemployment.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0555

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“…Growth of this magnitude was made possible by globalization. In a global economy, no nation is self-sufficient; Each nation is involved in trade at different levels, in order to sell what it produces, to buy what it lacks, and in some sectors of the economy to produce more efficiently than its trading partners (Kolawole & Henry, 2009).…”

Section: Introductionmentioning

confidence: 99%

A Critical Assessment of the Nexus between Foreign Direct Investment and Economic Growth in the Nigerian Context

Solomon Reuben,

Victor Ato,

Seyi Vincent

et al. 2024

JEFMS

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Foreign Direct Investment (FDI) is the interaction of the rest of the world with a domestic economy. These interactions influence economic growth, depending on a number of determinants, such as: foreign trade policy, corruption, security, form and system of government, exchange rate, monetary and fiscal policy, economic equipment, infrastructure and availability of human capital, etc. The amount of FDI a sector will attract will be empirically determined, and its importance to the country will go a long way in determining the country's focus on continued economic growth. This study examined the impact of FDI on Nigeria's economic growth. The study focused on two key variables, namely FDI inflow and Nigeria's economic growth. Economic growth, the independent variable, is represented by three substitutes; Gross domestic product, gross investment and labor productivity. The investigation period extended from 2010 to 2019. In this study, the correlative research design was chosen. Descriptive statistics, Pearson's correlation, and regression analysis with SPSS 23 were used to analyze the secondary data collected from the National Bureau of Statistics’ Reports. The study found out that FDI has a negative but insignificant association with Nigeria's economic growth. The study, therefore, made the following recommendations: the government should encourage economic growth through start-ups, entrepreneurship and innovation; Nigeria should invest and accumulate knowledge, human/physical capital and promote the adoption of technologies; finally, domestic savings should be mobilized by the government through tax cuts, job creation, and improving the financial system to increase capital formation.

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Government Capital Expenditure, Foreign Direct Investment, and Economic Growth Relationship in Nigeria

Cited by 4 publications

References 28 publications

Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

A Critical Assessment of the Nexus between Foreign Direct Investment and Economic Growth in the Nigerian Context

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