Impact of Capital Inflows on Manufacturing Exports and Economic Growth: An Empirical Evidence from Nigeria

Abstract

A lot of studies have examined the relationship between capital inflows and economic growth in Nigeria; Most of these studies examined either oil export, non-oil export or total exports, without specific emphasis on manufacturing export; given that manufacturing export is fundamental to economic growth. In this case, we examined the dynamic impact of capital inflows on manufacturing exports and economic growth in Nigeria between 1981 and 2017 using annual data. Data collected were analyzed using Autoregressive Distributed Lag (ARDL) econometric techniques and the results revealed that capital inflows have significant and positive impact on economic growth (t= 4.42884, p< 0.005) both in the short and long run; and positive but statistically insignificant impact on manufacturing exports (t= 0.73, p> 0.05). Therefore, the study concluded that capital inflows have significant impact on economic growth but no impact on the manufacturing exports in Nigeria; and we recommend that the government and monetary authorities’ in Nigeria should formulate economic policies that will promote manufacturing exports through adequate and efficient infrastructural facilities that would encourage the needed capital inflows to the manufacturing sector and increase the production of goods for local consumption and export.

Does financial sector development have a sustainable level of effects on inclusive growth in Sub-Saharan African countries? Evidence from dynamic panel threshold analysis

“…As a result, this concept becomes critical in this study because it is all about improving the general level of investment, productive economy, and education. Inclusive growth is a multifaceted idea of economic growth that is at the center of policy debates around the world because it provides more information about the growth of an economy than ordinary GDP (Asian Development Bank Strategy, 2020;Clarke, Xu, & Fou, 2017;IMF, 2016b;Joseph, Olayiwola, & Yinusa, 2019;Kiani & Ullah, 2015;Munir & Ullah, 2018;Olayiwola, 2022;Olayiwola & Akinbobola, 2022;Olayiwola & Joseph, 2020;Olayiwola, Okunade, & Fatai, 2021). Figure 6 illustrates the level of inclusive growth index in selected SSA countries.…”