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Determinants of Total Factor Productivity Growth in Nigeria, 1970–2009

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  • Anthony Enisan Akinlo
  • Oluwabunmi Opeyemi Adejumo

Abstract

This article examines the determinants of total factor productivity (TFP) in Nigeria over the period 1970–2009. Using error correction model (ECM), impulse-response functions and variance decompositions, the results show that in the long run, human capital, trade openness and inflation have a significant negative impact on TFP. However, foreign direct investment (FDI) has significant positive effect. In the short run, human capital and openness are positively related to TFP, while FDI and unemployment have negative effect on TFP. The results suggest that policies that enhance quality of education encourage intermediate imports and non-oil exports as well as reduce inflation and unemployment will enhance TFP growth in Nigeria.

Suggested Citation

  • Anthony Enisan Akinlo & Oluwabunmi Opeyemi Adejumo, 2016. "Determinants of Total Factor Productivity Growth in Nigeria, 1970–2009," Global Business Review, International Management Institute, vol. 17(2), pages 257-270, April.
    • Handle: RePEc:sae:globus:v:17:y:2016:i:2:p:257-270
    DOI: 10.1177/0972150915619801
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    Cited by:

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    2. Isaac Abekah-Koomson & Pang Wei Loon & Gamini Premaratne & Teo Siew Yean, 2021. "Total Factor Productivity Growth: Evidence from West African Economies," Global Business Review, International Management Institute, vol. 22(6), pages 1405-1420, December.
    3. Syed Ali Raza & Mohd Zaini Abd Karim, 2018. "Influence of Systemic Banking Crises and Currency Crises on the FDI-Growth Nexus: Evidence from China," Global Business Review, International Management Institute, vol. 19(3), pages 572-589, June.

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