Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy

Anthony Orji, Godson Umunna Nwagu, Jonathan E. Ogbuabor and Onyinye Anthony-Orji
Authors registered in the RePEc Author Service: Anthony Orji

Journal of Infrastructure Development, 2021, vol. 13, issue 1, 65-78

Abstract: The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification : E22, F21, F23, F43

Keywords: Foreign direct investment; economic growth; autoregressive distributed lag; OLS; Nigeria (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:jouinf:v:13:y:2021:i:1:p:65-78

DOI: 10.1177/09749306211024433

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