Exports, Foreign Direct Investment and Economic Growth: An Empirical Application for Nigeria

Babalola, Sikiru Jimoh; Dogon-Daji, Shehu Dan Hassan; Saka, Jimoh

doi:10.5539/ijef.v4n4p95

Cited by 18 publications

(8 citation statements)

References 18 publications

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“…This therefore gives an impression that further increase in the inflow of non-oil related foreign direct investment is capable of promoting gross domestic product in Nigeria to the tune of 0.000731 unit all things being equal. The result of this findings further support the report of Babalola et al, [41], Nnamdi, and Eniekezimene, [14] whose study present that Nigerian gross domestic product is more responsive to non-oil related foreign direct investment compare to oil related.…”

Section: Non-oil Related Foreign Direct Investment and Gross Domestic Product In Nigeriasupporting

confidence: 90%

Foreign Direct Investment and Economic Growth in Nigeria

Ndugbu

Otiwu

Uzowuru

2021

SAJSSE

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This study examined the relationship between foreign direct investment and economic growth in Nigeria using secondary data sourced from the Central Bank of Nigeria (CBN) statistical bulletin between the periods of 1986 to 2017. The study employed Vector Error Correction Model (VECM) and Pairwise Granger Causality test to ascertain the direction of causality between variable employed. Findings revealed that of the six exogenous variables used as an indicator of foreign direct investment, only the non-oil related foreign direct investment, trade openness and market capitalization were able to pass test of hypothesis, which suggest that of the six employed independent variables, three established the fact that foreign direct investment is a vital stimuli in promoting economic performance in Nigeria with more emphasis on the non-oil related foreign direct investment. The study thus concluded that non-oil related foreign direct investment is more helpful to Nigeria’s economy compared to oil related foreign direct investment inflows. Consequently, it is recommended that both Nigeria’s private and public sectors should intensify efforts to attract further foreign direct investment inflows into the non-oil related sectors of the economy, while relatively de-emphasizing attraction of inflows into the oil related sector in the interest of the country.

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Section: Non-oil Related Foreign Direct Investment and Gross Domestic Product In Nigeriasupporting

confidence: 90%

Foreign Direct Investment and Economic Growth in Nigeria

Ndugbu

Otiwu

Uzowuru

2021

SAJSSE

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“…Several studies have also documented bidirectional causality between economic growth and exports (Kalaitzi and Cleeve 2018 ; Reddy 2020 ). Furthermore, studies assert that exports promote employment, the development of enterprises, and advancement in technological know-how (Babalola et al 2012 ; Kumari and Malhotra 2014 ). We investigate the impact of exports on the economic growth of selected Arab economies based on the following hypothesis:…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Toward a sustainable growth path in Arab economies: an extension of classical growth model

et al. 2023

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Background/Objectives Many economies are on the trajectory of alternative growth drivers other than conventional capital and labor. Access to credit facilities is a pertinent indicator of economic growth. In line with the United Nations Sustainable Development Goals (UNSDGs-8) agenda, the national goal for sustainable development for most economies and Arab economies is no exception. Therefore, the current study adopts a traditional growth model by exploring the relationship between gross domestic product (GDP) per capita, credit for private sectors, ratio of exports, real GDP, and per labor force participants for selected Arab economies annually from 2001 to 2020. Research design This study leverages the Fourier Kwiatkowski–Phillips–Schmidt–Shin (KPSS) unit root test and second-generation panel econometrics as estimation techniques, such as Westerlund and Edgerton panel cointegration test, and the use of two estimators, namely the augmented mean group (AMG) and common correlated error mean group (CCEMG), to obtain robust results. Findings Empirical findings from Westerlund and Edgerton panel cointegration tests validate the long-run equilibrium relationship among the outlined variables. Further empirical results indicate that the share of exports is negatively significant with economic growth in countries such as Kuwait, Lebanon, Tunisia, and Jordan. Additionally, savings and labor force participation have a positive relationship with economic growth in individual countries such as Algeria and Bahrain. As per the panel, there is no significant relationship between labor force participation and economic growth. This indicates that the skilled labor force enhanced economic growth. Conclusions These findings come with inherent far-reaching policy suggestions for economies and panels. Further details on country-specific policy actions are presented in the concluding section. Graphical Abstract

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“…Over the period of 1960 to 2009, Babalola et al . () investigate the relationship among FDI, exports and economic growth in Nigeria. They employ ECM, fully modified least squares method (FMOLS) and cointegration methods to show that deviation from long‐run real gross domestic product returns to its path by 48 per cent correction over the following year.…”

Section: Literature Reviewmentioning

confidence: 99%

FDI, Employment and Economic Growth in Nigeria

Inekwe¹

2013

African Development Review

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The study examines the links between Nigerian economic growth, employment and foreign direct investment (FDI) in the manufacturing and servicing sectors between 1990 and 2009. The significant results of the Johansen cointegration technique and the vector error correction model reveal that FDI in the servicing sector has a positive relationship with economic growth while FDI in the manufacturing sector has a negative relationship. FDI in the manufacturing sector has a positive relationship with employment rate while FDI in the servicing sector has a negative relationship with employment rate. Granger causal relationships among these variables exist. In the growth equation, causality runs from growth to FDI in the service sector while growth and FDI in the manufacturing sector have bidirectional causal effect. For the employment equation, unidirectional causality runs from FDI in the service and manufacturing sectors to employment rate.

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Exports, Foreign Direct Investment and Economic Growth: An Empirical Application for Nigeria

Cited by 18 publications

References 18 publications

Foreign Direct Investment and Economic Growth in Nigeria

Foreign Direct Investment and Economic Growth in Nigeria

Toward a sustainable growth path in Arab economies: an extension of classical growth model

FDI, Employment and Economic Growth in Nigeria

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