Impact of Foreign Direct Investment on Unemployment rate in Nigeria (1980-2015)

Johnny, Nelson; Timipere, Ekokeme Tamaroukro; Okoyan, Krokeme

doi:10.6007/ijarbss/v8-i3/3905

Cited by 22 publications

(21 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The results of the study in the long-term were compatible with some previous studies, such as Johnny et al (2018) which demonstrated that FDI reduces the unemployment rate in Nigeria, and Tegep et al (2019) showed that FDI reduces the unemployment rate at 36 Indonesian provinces. Irpan et al (2018) also illustrated that FDI declines the unemployment rate in Malaysia.…”

Section: -Conclusionsupporting

confidence: 91%

“…These results confirm that the relationship of FDI with unemployment is negative and indirect and FDI cannot explain the change in the unemployment rate without using economic growth and the minimum wages as intermediating variables. Johnny et al (2018) [11] studied the impact of FDI on the unemployment rate in Nigeria from 1980 to 2015. The study revealed that: There is a negative and significant relationship between FDI and the unemployment rate, and there is a positive and significant relationship between capital formation and the unemployment rate.…”

Section: -Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach

Alalawneh

Nessa²

2020

Emerg Sci J

View full text Add to dashboard Cite

The purpose of this study was to investigate the impact of foreign direct investment on unemployment in six countries in the Middle East and North Africa, Egypt, Jordan, Lebanon, Morocco, Tunisia, and Turkey, as this region is considered one of the most regions in the world with a high rate of unemployment. The study employed panel data for the period from 1990 to 2018, where three economic models were used to examine the impact of FDI on unemployment, male unemployment, and female unemployment, in the long run, using the Fixed Effect Model (FEM) and Random Effect Model (REM), in addition to finding the causal relationship in the short term using Panel VAR (Granger causality tests). The results showed that FDI reduces the unemployment rate, the male unemployment rate, and the female unemployment rate in the long run. The results of the study also revealed that there is no causal relationship in the short term between FDI and unemployment in its various forms, while there is a bidirectional causal relationship between FDI and exports according to the three economic models. This paper is the first of its kind in terms of examining the effect of FDI on unemployment in the six countries as a grouped and a sample of the MENA region.

show abstract

Section: -Conclusionsupporting

confidence: 91%

Section: -Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach

Alalawneh

Nessa²

2020

Emerg Sci J

View full text Add to dashboard Cite

show abstract

“…Based on their study, the impact of foreign direct investment on the unemployment rate in Nigeria from 1980 to 2015, findings from the co-integration test and ordinary least square approach revealed a negative and insignificant relationship between foreign direct investment and unemployment rate. Chella and Phiri (2017) agreed with Johnny et al(2018), when similar study was conducted on South Africa. The outcomes of ARDL approach indicated that FDI had no significant influence on the unemployment reduction except domestic investment which had a significant positive impact on the employment growth rates.…”

Section: Literature Reviewsupporting

confidence: 59%

“…One leading key factor receiving an interesting attention is the effect of either trade openness on unemployment or financial openness (FDI) on unemployment. Studies like Onanuga et al (2018), Johnny et al (2018). Daly (2017), Adamu et al (2017), Matthew and Ogunlusi (2017), Awad et al (2016) are among the few empirical studies that have conducted nexus either between trade openness and unemployment or financial openness and unemployment.…”

Section: Literature Reviewmentioning

confidence: 99%

Globalization and Technological Innovation: Which Impact on the Rise of Unemployment?

Raji

2020

rfm

View full text Add to dashboard Cite

This paper explores the asymmetric nexus between globalization, technological innovation and unemployment within non-linear Autoregressive Distributed Lag (NARDL) framework, Granger causality approach and forecast error variance decomposition technique, covering the period from 2000 to 2018, using quarterly data in Nigeria. To avoid variable omission bias, the study incorporated control variables. The findings showed that both the positive and negative shock of our variables of study indicate varying signs and magnitudes and there is a mixed presence of asymmetries among the nexus, as indicated in the variables for both short and long runs. The results implies that trade globalization, financial globalization and technological innovation biased process innovation contributed to the persistent increase in unemployment rate except technological innovation biased product innovation, which supported the unemployment reduction in Nigeria. These findings were not consistent with existing theories. The results based on the model and empirical data suggest that the authority needs to initiate socially suitable and economic schemes and strategies by ensuring effective and efficient connectivity between globalization and technology via integrating science, technology, research and development. Also, creating an enabling environment that supports and promotes sound and credible government institutions and education including adequate mechanism to ensure optimum utilization of scare resources and avoidance of embezzlement of these limited resources by corrupt officials.

show abstract

“…Investasi asing (foreign direct investment/FDI) adalah salah satu komponen kunci dari sistem ekonomi internasional yang terbuka dan efisien. FDI adalah investasi langsung yang dilakukan oleh individu atau perusahaan di negara lain untuk kepentingan produksi atau bisnis, baik dengan secara langsung membangun bisnis atau memperluas operasi bisnis yang sudah ada atau dengan membeli perusahaan di negara sasaran (Johnny, Timipere, & Krokeme, 2018). Untuk membuktikan secara empiris pengaruh FDI terhadap pengangguran diantaranya telah dilakukan oleh Stamatiou dan Dritsakis (2014) yang menggunakan beberapa model ekonometrik untuk mengevaluasi dampak FDI terhadap pengangguran dan pertumbuhan ekonomi di Yunani tahun 1970 hingga 2012.…”

Section: Pendahuluanunclassified

Penerapan Autoregressive Distributed Lag Dalam Memodelkan Pengaruh Inflasi, Pertumbuhan Ekonomi, Dan Fdi Terhadap Pengangguran Di Indonesia

Jumhur

2020

JEBIK

View full text Add to dashboard Cite

This study aims to examine the effect of inflation, economic growth, and foreign investment on unemployment in Indonesia. Using the autoregressive distributed lag (ARDL) analysis method to analyze the 1991-2018 time series data collected from the World Bank's World Development Indicators database. The results found that inflation has a negative and significant effect in the short term but not significant in the long term in Indonesia. Economic growth has a negative and significant effect on both short and long-term unemployment in Indonesia, and foreign investment has a negative and significant effect on both short and long-term unemployment in Indonesia. Through the ARDL model, this research is able to prove that inflation, economic growth, foreign investment, and budgeting are proven to have long-term cointegration or move together in the long term. The four variables also have a dynamic short-term relationship that has a fairly high speed of adjustment towards equilibrium per year. Based on the results, policymakers, in this case the government must provide a conducive investment environment by eliminating the structural rigidity that exists in the economy to attract investment, both foreign and domestic investment, to encourage economic growth and create jobs in Indonesia.

show abstract

Impact of Foreign Direct Investment on Unemployment rate in Nigeria (1980-2015)

Cited by 22 publications

References 1 publication

The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach

The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach

Globalization and Technological Innovation: Which Impact on the Rise of Unemployment?

Penerapan Autoregressive Distributed Lag Dalam Memodelkan Pengaruh Inflasi, Pertumbuhan Ekonomi, Dan Fdi Terhadap Pengangguran Di Indonesia

Contact Info

Product

Resources

About