Infrastructure Development and Economic Growth Nexus in Nigeria

Olasunkanmi Owolabi-Merus

International Journal of Academic Research in Business and Social Sciences, 2015, vol. 5, issue 1, 376-382

Abstract: The impact and significance of infrastructure development towards the economic growth of a country cannot be overemphasised. This is because it is a major component that is required to ensure an increase in domestic productivity and attract foreign direct investment (FDI) inflow. This study through the use of Ordinary Least Squares and Granger Causality econometric techniques investiages the infrastructural development and economic growth nexus in Nigeria. The former is proxied by Gross Fixed Capital Formation (GFCF) while the latter is proxied by Gross Domestic Product (GDP). The period under review is from 1983 to 2013 and the data for this study is obtained from the World Bank’s Africa Development Indicators. The empirical results from this study reveal that infrastructural development has a positive and statistically significant impact on Nigeria’s economic growth. However, the Granger Causality test connotes that there is no mutual correlation between both variables in Nigeria in the period under review.

Keywords: Economic Growth; Nigeria; Gross Fixed Capital Formation; Infrastructural Development; OLS and Granger Causality (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:5:y:2015:i:1:p:376-382

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