Foreign Direct Investment And Economic Growth In Nigeria: An Analysis Of The Endogenous Effects
Journal Title: International Journal Of Management And Economics Invention - Year 2015, Vol 0, Issue 1
Abstract
This study examined the nexus between FDI and growth for possible endogenous effects. Relevant time series data spanning the period 1981 – 2013 were collected from the Central Bank of Nigeria Statistical Bulletin, 2013. Monetary policy rate (MPR) was proxy for interest rate (INTR), foreign direct investment (FDI) and real gross domestic product proxy for growth. Both the Philips – Peron (PP) and the Kwiatkowski-Philips-SchmidtShin (KPSS) tests for unit root showed all the variables to be integrated of order one, I(1) and the Johansen’s test for cointegration showed no cointegrating vector in level form. Using a Structural Vector Autoregressive (SVAR) Model on the first differenced variables and the long-run structural restrictions that FDI does not respond to nominal shocks in the short-run, and that growth does not respond to nominal and external shocks in the short-run the study concludes that growth is contemporaneously influenced by FDI but growth does not attract FDI. This study therefore showed no evidence supporting the endogenous effect hypothesis in Nigeria. It was therefore recommended that there should be concerted efforts to attract foreign direct investment into the country.
Authors and Affiliations
Tubo P. OKUMOKO
Keywords
Related Articles
- EP ID EP211311
- DOI -
- Views 136
- Downloads 0
Investigation of Entrepreneurship as a Driver for Job Creation Among Youths
Unemployment is a pathology that plagues all nations including South Africa. Hence this study used phenomenological approach with the intention of deeply understanding entrepreneurship as a driver of job creation based o...
Factors Affecting Provision of Quality Service in the Public Health Sector: A Case of Nyahururu District Hospital, Kenya
In healthcare industry service quality has become an imperative in providing patient satisfaction because delivering quality service directly affects the patient’s satisfaction. The public health sector should ensure pat...
The Role of Livelihood Choices on Women Economic Empowerment, the Case of Kilte Awlaelo Woreda, Tigray Region, Ethiopia
Feminist poverty is not only consequence of lack of income, but also the result of the deprivation of capabilities and gender biases. In Ethiopia, the women particularly the female-headed households suffer from economic...
Corruption As A Major Challenge Of Human Capital Development In Nigeria
The study focused on corruption as a major challenge in the attainment of human capital development in Nigeria. The study basically used descriptive approach. Data used for the study were secondary data generated from Na...
Consumer Impacts for the Milk Production in Albania (Descriptive Analysis)
As milk is a very important component of the Albanians diet, this study explores consumer preferences for milk in Albania and also tries to determine consumers types based on their preferences and socio-demographic facto...