Empirical Analysis of the Relationship between FDI, Technology Transfer and Economic Growth in Nigeria

Ekperiware, Moses C.

doi:10.9734/bjemt/2013/3631

Cited by 3 publications

(1 citation statement)

References 8 publications

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“…Additionally, financial development and trade openness positively affect the inflow of FDI and domestic capital investment in the long term. However, numerous investigations [17][18][19][20][21][22][23][24][25] have agreed that foreign direct investment (FDI) can augment the GDP through overflow effects. These effects encompass the introduction of novel technologies, the accumulation of capital, the expansion of exports, and the fostering of human capital.…”

Section: Investment and Economic Growthmentioning

confidence: 99%

Analyzing GDP Growth Drivers in Saudi Arabia: Investment or Consumption: An Evidence-Based ARDL-Bound Test Approach

Mohammed

2024

Sustainability

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This study delves into the intricate interplay of economic growth components, specifically focusing on consumption and investment in Saudi Arabia from 2000 to 2022. Employing vector error correction models and co-integration techniques, we analyze the short- and long-term dynamics within the relationship of consumption, investment, and economic growth. Granger causality analysis is also used to discern these pivotal variables’ causal connections. Our empirical analysis reveals a persistent long-term cointegration relationship among the variables, underscoring the enduring nature of their interdependency. Furthermore, our findings highlight consumption and investment’s statistically significant positive impact on economic growth. Notably, the short-term analysis unveils a stable model characterized by an annual adjustment to equilibrium of 100%. Moreover, the Granger causality study demonstrates unidirectional causal linkages among consumption, investment, and economic growth. These findings hold substantial implications for policy formulation in Saudi Arabia. Policymakers must grasp the ramifications of burgeoning prosperity and evolving private consumption patterns on future environmental outcomes. Achieving sustainable long-term results necessitates equal emphasis on bolstering private consumption and fostering other facets of economic growth.

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Section: Investment and Economic Growthmentioning

confidence: 99%

Analyzing GDP Growth Drivers in Saudi Arabia: Investment or Consumption: An Evidence-Based ARDL-Bound Test Approach

Mohammed

2024

Sustainability

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The impact of technology transfer / policies on the economic catch-up of the Korean National Innovation System and its implications for Nigeria

Shenkoya

Kim

2020

African Journal of Science, Technology, Innovation and Developm

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External financial inflows and domestic investment in the economies of WAEMU: Crowding-out versus crowding-in effects

Fahinde¹,

Abodohoui²,

Mohiuddin³

et al. 2015

jda

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This paper analyzes the effects of capital inflows on domestic investment in the Economic and Monetary Union of West Africa (WAEMU). The WAEMU countries are Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo. Several studies have examined the conditions of attracting foreign capitals and their contributions to economic growth in sub-Saharan economies of WAEMU. However, very few studies have examined the effects of capital on domestic investment in national economies. In this respect, there are three types of foreign capital to be taken into account namely Foreign Direct Investment (FDI), Official development Assistance (ODA) and Migrants Remittances (MR). FDI, ODA and MR are major sources of external capital flows in developing countries. The current empirical study is based on the theoretical model of to test the hypothesis of crowding-out and crowding-in of domestic investments by different types of foreign capitals considered. The econometric estimates are based on the GMM method of Arellano and Bond (1991) applied to a panel of WAEMU countries over the period 1996-2011. The results of the study show that FDI crowds-out domestic firms in both the short and long term. Similarly, ODA have a lasting crowding-out effects on local investment. As for migrants’ remittances, the econometric results show that they do not have a significant effect on domestic investment in the countries of the union. These findings imply that the host countries of the WAEMU should invest more on developing their absorptive capability to attract technology transfer oriented FDI, channel the ODA to develop vital infrastructure for rapid economic development and create conducive environment for the MR to divert towards productive investments to create more crowding-in effects in lieu of the crowding-out effects. Practically, the results of this study show that multinationals have a lasting crowding-out businesses in the WAEMU region. This is mainly due to the low technological absorption capacity of local firms and the lack of complementarity between local enterprises and multinational companies. Several future research on capital flows will better appreciate the impact of foreign investment on the economies of developing countries especially those in Africa.

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Empirical Analysis of the Relationship between FDI, Technology Transfer and Economic Growth in Nigeria

Cited by 3 publications

References 8 publications

Analyzing GDP Growth Drivers in Saudi Arabia: Investment or Consumption: An Evidence-Based ARDL-Bound Test Approach

Analyzing GDP Growth Drivers in Saudi Arabia: Investment or Consumption: An Evidence-Based ARDL-Bound Test Approach

The impact of technology transfer / policies on the economic catch-up of the Korean National Innovation System and its implications for Nigeria

External financial inflows and domestic investment in the economies of WAEMU: Crowding-out versus crowding-in effects

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