Most of the Nigerian government’s transformation agenda is geared toward creating and enabling business environments to attract foreign direct investment. Opinions are divided as to the impact of foreign investment on trade and this researcher believed it could be either positive or negative. Hence, this research is to ascertain the magnitude of foreign investment’s impact on Nigeria’s bilateral trade. Integrating foreign direct investment in the gravity model, we applied the PPML technique because of its robustness and ability to recognise zero trade. We segregated foreign investment into three-flow, stock and its annual growth. Our estimation revealed that foreign direct investment stock impacts negatively on bilateral trade flow in Nigeria for both exports and imports and it is robust with the overall sample. Exporters’ foreign direct investment inflow was also revealed to have an impact on bilateral trade in Nigeria. But in all ramifications the magnitude of the negative impact is relatively small but statistically significant reflecting that trade and inward foreign investment are at least substitutes. Nigeria should further encourage inward foreign investment to further stimulate economic growth and aid in creating import substitution.
Most of the Nigerian government's transformation agenda is geared toward creating and enabling business environments to attract foreign direct investment. Opinions are divided as to the impact of foreign investment on trade and this researcher believed it could be either positive or negative. Hence, this research is to ascertain the magnitude of foreign investment's impact on Nigeria's bilateral trade. Integrating foreign direct investment in the gravity model, we applied the PPML technique because of its robustness and ability to recognise zero trade. We segregated foreign investment into three-flow, stock and its annual growth. Our estimation revealed that foreign direct investment stock impacts negatively on bilateral trade flow in Nigeria for both exports and imports and it is robust with the overall sample. Exporters' foreign direct investment inflow was also revealed to have an impact on bilateral trade in Nigeria. But in all ramifications the magnitude of the negative impact is relatively small but statistically significant reflecting that trade and inward foreign investment are at least substitutes. Nigeria should further encourage inward foreign investment to further stimulate economic growth and aid in creating import substitution. Contribution/ Originality:This study uses new estimation methodology and the model to determine the impact of foreign direct investment (FDI) on Nigeria's trade development. The impact of FDI was measured from three perspectives; stock, flow and growth. The paper revealed there is a robust and statistically significant negative effect of FDI on trade, though very negligible.
Small and Medium scale Enterprise (SMEs) has been receiving great attention because of the tremendous impact it plays in society. This is why its development is paramount to any nation. This study assessed the SMEs and employment generation in Nigeria. the study employed time-series data from 1981 to 2021 using Autoregressive Distributed Lag Model as the method of analysis. The finding revealed that there is a positive and significant relationship between Small and Medium-scale Output (SMEO), Gross Domestic Products growth rate (GDPg) and employment generation but an insignificant nexus with poverty reduction (POVR) while also revealed a negative nexus between income generation and employment generation in Nigeria. The study concluded that there is a significant relationship between SMEs and employment generation in Nigeria. It, therefore, concluded that government should create an avenue that all informal SMEs be registered so as to be able to explore them during tax collection. JEL CODE: D22, E26, and H32.
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