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Foreign Direct Investment and Public Revenue in Nigeria

Author

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  • Ezekiel Mijah Elias

    (Department of Economics, Adamawa State University, Mubi–Nigeria)

Abstract

Developing countries of the world have come to recognised Foreign Direct Investment (FDI) as an alternative supplement to deficit supply of savings and capital. These countries have always make efforts to attract FDI into their economies using available economic policy tools. This research has examined the nexus between FDI and Public revenue in Nigeria bearing in mind the periods 1981 and 2021. The research used the Toda Yamamoto approach to causality and the findings revealed that, capital expenditure, public revenue and tax revenue are important tools in attracting the inflow of FDI in Nigeria. Furthermore, the research also found that FDI in Nigeria is an important contributor to non–oil revenue. This research recommended a viable use of public finance tools to lure FDI into the country as well as the strengthening of fiscal policy institutions for ensuring the manifestation of FDI feedback effect on public revenue.

Suggested Citation

  • Ezekiel Mijah Elias, 2025. "Foreign Direct Investment and Public Revenue in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 1007-1017, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-15:p:1007-1017
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    References listed on IDEAS

    as
    1. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    2. Shahriyar Mukhtarov & Mustafa Mohammad Alalawneh & Mayis Azizov & Farid Jabiyev, 2020. "The Impact of Monetary Policy and Tax Revenues on Foreign Direct Investment Inflows: An Empirical Study on Jordan," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(6), pages 1011-1018.
    3. Hassan O. Ozekhome, 2022. "Tax and Foreign Direct Investment in Nigeria: A Dynamic Estimation Approach," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(2), pages 115-124.
    4. Bacha, Edmar L., 1990. "A three-gap model of foreign transfers and the GDP growth rate in developing countries," Journal of Development Economics, Elsevier, vol. 32(2), pages 279-296, April.
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