International Journal of Business Administration and Management Research | VOL. 1
Read

Empirical Analysis of the Relationship between Foreign Direct Investment and Economic Growth in Developing Countries- Evidence from Nigeria

Publication Date Jun 15, 2015

Abstract

This study examines the effect of Foreign Direct Investment (FDI) on economic growth of Nigeria. The main objective of the study is to explore and quantify the contribution of Foreign Direct inflows to economic growth in Nigeria and other macro-economic variable(s). The model built for the study proxy real gross domestic product as the endogenous variable measuring economic growth as a function of Foreign Direct Investment,Domestic capital, Government Expenditure, real exchange rate and Inflation rate as the exogenous variables in the first model while unemployment was expressed as a function of Foreign Direct Investment, Governmentexpenditure and real GDP. Annual time series data was gathered from Central Bank of Nigeria Statistical bulletin, National Bureau of Statistics (NBS) and the World Economic Outlook spanning 1970 to 2013. The study used econometric techniques of Augmented Dickey-Fuller (ADF) unit root test, pairwise granger causality test,Johansen co-integration test and error correction model (ECM) for empirical analysis. The results of unit rootrevealed that, all the variables in the model were integrated at first difference while pairwise granger causality revealed a unidirectional relationship between Foreign Direct Investment (FDI) and Economic growth (GDP) in Nigeria and no causal relationship between Foreign Direct Investment and unemployment rate. The co-integration test shows that, long-run equilibrium relationship exists among the variables captured in model but model 2 revealed no hypothesized co-integra...

Concepts
Powered ByUnsilo

Economic Growth In Nigeria
Growth In Nigeria
Foreign Direct Investment
National Bureau Of Statistics
Pairwise Granger Causality Test
Economic Growth
Pairwise Granger Causality
Function Of Investment
Real Exchange Rate
Johansen Co-integration Test

Introducing Weekly Round-ups!Beta

Powered by R DiscoveryR Discovery

Round-ups are the summaries of handpicked papers around trending topics published every week. These would enable you to scan through a collection of papers and decide if the paper is relevant to you before actually investing time into reading it.

Climate change Research Articles published between May 09, 2022 to May 15, 2022

R DiscoveryMay 16, 2022
R DiscoveryArticles Included:  2

Introduction: Climate change is a pervasive threat to global biodiversity and is expected to have profound effects on the resilience and abundance of ...

Read More

Coronavirus Pandemic

You can also read COVID related content on R COVID-19

R ProductsCOVID-19

ONE PROBLEM . ONE PURPOSE . ONE PLACE

Creating the world’s largest AI-driven & human-curated collection of research, news, expert recommendations and educational resources on COVID-19

COVID-19 Dashboard