Abstract
This study examined the nexus between the inflows of FDI and exports of crude oil in Nigeria. Data were collected over the period of 1990 to 2018 from the UNCTAD Investment Reports and the Central Bank of Nigeria respectively. Dynamic Ordinary Least Square (DOLS) and Granger causality were consequently adopted in estimating the objective of this study. It is imperative to summarize the major findings in this study as follows; FDI inflows had a significant positive impact on oil exports in Nigeria. The relationship between FDI inflows and exchange rate was positive but insignificant. Meanwhile, FDI inflows and inflation rate have insignificant negative relationship. In addition, these findings in this study motivated the following recommendation in Nigeria, that policy measures that would stabilize oil exports, exchange rate and inflation rate should be embarked upon by the policy makers in Nigeria in order to induce the inflows of FDI accordingly in the long run.
Highlights
In the last few years, foreign direct investment inflows and outflows have been one of the most international capital flow integrating the global economy
Emergence of crude oil alongside oil boom witnessed in 1958 and 1970s respectively orchestrated a surge in FDI inflows in Nigeria (Anthony & Mustafa, 2011; Hor, 2016; Mizirak & Altintas, 2018)
6364.482 3014.220 25434.26 217.7376 5092.526 0.665150 2.996417 3.654334 0.359158 232541.0 5.15E+03 29 In Table 2, the results of descriptive analysis of FDI inflows, exchange rate, inflation rate and oil exports were presented with a view to providing relevant information about the normal distribution of the data employed to estimate the relationship among the variables of interest
Summary
In the last few years, foreign direct investment inflows and outflows have been one of the most international capital flow integrating the global economy. The integration of the global economy through FDI has resulted to an increase in GDP growth, job creation and social development of many nations of the world. This has encouraged various policy makers to use various holistic approach to stimulate FDI inflows in their economies. In Nigeria, the inflows of FDI is traceable to the era of the colonial masters. Emergence of crude oil alongside oil boom witnessed in 1958 and 1970s respectively orchestrated a surge in FDI inflows in Nigeria (Anthony & Mustafa, 2011; Hor, 2016; Mizirak & Altintas, 2018)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Business and Administrative Studies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
