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Nexus between Foreign Direct Investment and Oil Exports in Nigeria: An Empirical Perspective

Author

Listed:
  • Aderemi Timothy Ayomitunde

    (Department of Economics, Olabisi Onabanjo University, Ogun State, Nigeria)

  • Alaka Adedayo

    (Department of Banking and Finance, Yaba College of Technology, Lagos, Nigeria)

  • Ebere Chidinma Edith

    (Department of Economics, Babcock University, Ilishan Remo, Ogun State, Nigeria)

Abstract

This study examined the nexus between the inflows of FDI and exports of crude oil in Nigeria. Data were collected over the period of 1990 to 2018 from the UNCTAD Investment Reports and the Central Bank of Nigeria respectively. Dynamic Ordinary Least Square (DOLS) and Granger causality were consequently adopted in estimating the objective of this study. It is imperative to summarize the major findings in this study as follows; FDI inflows had a significant positive impact on oil exports in Nigeria. The relationship between FDI inflows and exchange rate was positive but insignificant. Meanwhile, FDI inflows and inflation rate have insignificant negative relationship. In addition, these findings in this study motivated the following recommendation in Nigeria, that policy measures that would stabilize oil exports, exchange rate and inflation rate should be embarked upon by the policy makers in Nigeria in order to induce the inflows of FDI accordingly in the long run.

Suggested Citation

  • Aderemi Timothy Ayomitunde & Alaka Adedayo & Ebere Chidinma Edith, 2020. "Nexus between Foreign Direct Investment and Oil Exports in Nigeria: An Empirical Perspective," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 6(3), pages 150-156.
    • Handle: RePEc:apa:ijbaas:2020:p:150-156
    DOI: 10.20469/ijbas.6.10003-3
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    References listed on IDEAS

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    1. Olomola Philip Akanni, 2007. "Oil Wealth and Economic Growth in Oil Exporting African Countries," Working Papers 170, African Economic Research Consortium, Research Department.
    2. Henry Okodua, 2009. "Foreign Direct Investment and Economic Growth: Co-Integration and Casualty Analysis of Nigeria," The African Finance Journal, Africagrowth Institute, vol. 11(1), pages 54-73.
    3. Akinlo, A. Enisan, 2004. "Foreign direct investment and growth in Nigeria: An empirical investigation," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 627-639, July.
    4. Oluremi Ogun & Festus O. Egwaikhide & Eric K. Ogunleye, 2012. "Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa: Some Empirical Results," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 175-202, January-J.
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