EconPapers    
Economics at your fingertips  
 

Impact of Foreign and Domestic Investments on Economic Growth in Nigeria: An Application of ARDL Approach

Nafisa Mohammed and Mahabub Nasiru
Additional contact information
Nafisa Mohammed: Central Bank of Nigeria Gombe Branch, Gombe State, Nigeria.
Mahabub Nasiru: Entrepreneurial Development Center, Umaru Ali Shinkafi Polytechnic, PMB 2356, Sokoto State, Nigeria.

Post-Print from HAL

Abstract: This paper investigates the relationship between economic growth, domestic and foreign investments in Nigeria for the 1981-2018 periods. The properties of time series variables were examined through the application of Augmented Dickey-Fuller technique and Autoregressive Distributed Lag approach in testing the long-and-short runs relationship. The results of unit root suggest that four variables in the model were stationary at first difference while one is stationary at level. The results of the main model revealed that foreign investment has positive impact on economic growth in the long-and-short runs, domestic investment has negative impact on economic growth in both long-and-short runs and trade openness impacted positively on economic growth in Nigeria. Therefore, this paper recommends that concerted effort should be made by government, policy makers and relevant authorities to formulate policies aim at creating a conducive investment environment so that Nigerians and non-Nigerian investors will be encourage to increase their propensity to invest in the country. Policy makers should also take step to ensure foreign exchange stability and improve trade openness so as to achieve meaningful economic growth.

Date: 2021-02-22
References: Add references at CitEc
Citations:

Published in Asian Journal of Economics, Finance and Management , 2021, 3 (1), pp.64-73

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05188002

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-07-29
Handle: RePEc:hal:journl:hal-05188002