FDI and Economic Growth: Facts from Nigeria
By Adeolu B. Ayanwale Department of Agricultural Economics Obafemi Awolowo University Ole-Ife, Nigeria
AERC Research Conventional paper 165 Africa Economic Research Consortium, Nairobi April 3 years ago
THIS STUDY was maintained a give from the Africa Economic Research Consortium. The findings, views and recommendations are those of the author, yet , and do not always reflect the views with the Consortium, their individual members or the AERC Secretariat.
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Set of tables List of figures Fuzy Acknowledgements 1 . 2 . three or more. 4. five. 6. several. Introduction Literary works review A few stylized information about FDI in Nigeria Assumptive framework Methodology and conditional framework Effects and debate Summary and conclusion one particular 3 being unfaithful 17 nineteen 25 thirty five 37
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1 . installment payments on your 3. 5. 5. 6th. 7. 8. 9. twelve. 11. doze. 13. 13. Nigeria: Net foreign direct investment influx (US$ million) Nigeria: International direct purchase, 1970вЂ“2002 Sectoral composition of FDI in Nigeria, 1970вЂ“2001 percentage Standard statistics on FDI in Nigeria, 1970вЂ“2002 Summary figures of included variables Nigeria unit basic tests for stationarity, 1970вЂ“2002 Regression benefits: Determinants of FDI Instruments estimates intended for FDI OLS regression results вЂ“ FDI and growth OLS regression results вЂ“ FDI and non-oil growth 2SLS regression results вЂ“ FDI and growth 2SLS regression benefits вЂ“ FDI and non-oil growth Differences between Nigeria and sub-Saharan Africa (mean of selected variables) Actual and percentage share of oil and non-oil export earnings in Nigeria 9 10 doze 13 twenty one 24 twenty six 28 twenty-eight 29 twenty nine 30 thirty-one 33
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1 ) 2 . FDI inflow in to Nigeria, 1970вЂ“2002 Components of FDI inflow to Nigeria 18 16
Most countries strive to appeal to foreign direct investment (FDI) because of its recognized advantages as a tool of economic expansion. Africa вЂ“ and Nigeria in particular вЂ“ joined the rest of the world in in search of FDI because evidenced by the formation with the New Collaboration for Africa's Development (NEPAD), which has the attraction of foreign expense to The african continent as a main component. This kind of study investigated the empirical relationship among non-extractive FDI and economical growth in Nigeria and examined the determinants of FDI in to the Nigerian overall economy. Secondary info were sourced from the Central Bank of Nigeria, Worldwide Monetary Account and the National Office of Statistics. The period of analysis was 1970вЂ“ 2002. An increased growth style was believed via the ordinary least potager and the 2SLS method to uncover the relationship between your FDI, its components and economic growth. Results claim that the determinants of FDI in Nigeria are market size, system development and stable macroeconomic policy. Openness to transact and available human capital, however , are not FDI inducing. FDI in Nigeria leads to positively to economic expansion. Although the overall effect of FDI on monetary growth is probably not significant, the components of FDI do have got a positive effects. The FDI in the connection sector has got the highest probability of grow our economy and is in multiples of the of the essential oil sector. The manufacturing sector FDI in a negative way affects the economy, reflecting poor people business environment in the country. The level of available human capital is low and there is need for more emphasis on teaching to enhance its potential to play a role in economic growth.
The contribution of the number of institutions and persons towards the creation of this daily news is gratefully acknowledged. First, the Africa Economic Exploration Consortium pertaining to funding the research under their thematic research grant plan, and to the...