FDI, Employment and Economic Growth in Nigeria

Abstract

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.

Impact of Foreign Direct Investment on Human Development Index in Nigeria

“…Also, to our best knowledge, there is no study on the relationship between FDI and human development for the case of Nigeria. Hence, the relationship between FDI, economic growth and human development is not clear (Inekwe, 2013) and needs further investigation. Our study aims to develop a comprehensive understanding by taking into account both economic growth and human development factors about the effect of FDI on the well-being of Nigeria people.…”

International financial reporting standards and foreign direct investment: The case of Africa

“…This may be problematic as the sources of FDI inflow into Africa go beyond Europe; and most African countries have trade ties with North America, and Latin America and Asian countries. Lastly, our measure of foreign direct investment differs from previous studies (Groh & Wich, 2012;Gordon et al, 2012;Inekwe, 2013), and in that its FDI estimation is scaled by the gross domestic product (GDP) of the country, and is in line with the one used by international organisations such as Word Bank, international Monetary Fund, International Financial Statistics and Balance of Payments databases and the International Debt Statistics (World Bank Report, 2014).…”

Two essays on foreign direct investment and food security in Nigeria: A mixed methods approach.

“…In some cases, employees in the manufacturing sector are often price takers in the labour market and government may take sides with MNCs rather than domestic labourers (Inekwe, 2013). The negative effects, coexist with the positive effects mentioned earlier, and may reduce food security.…”

“…The comer store seller of local food is an age-old feature of many Nigerian cities serving food on the go for everyone from children to working adults (Inekwe, 2013). What has contributed significantly to the growth of fast food restaurants in Nigeria has been the inflow of FDI, which has resulted in urbanization, the growth of the middle class, and more women entering the labour force.…”

“…In addition many of the aforementioned received some form of foreign capital injection within this period (Inekwe, 2013). The remaining 30 percent industry annual turnover have solely featured new players into the fast food sector like KFC, Pizza Hut, and Domino Pizza (Carew, 2010;Inekwe, 2013).…”