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Impact of foreign direct investment on the agricultural sector in Nigeria (1981–2017)

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  • Chukwudi Emmanuel Edeh
  • Chidera Godson Eze
  • Sonia Onyinye Ugwuanyi

Abstract

The study investigates the impact of foreign direct investment on the agriculture sector in Nigeria using quarterly time series data for the period 1981–2017 obtained from the Central Bank of Nigeria Statistical Bulletin. Preliminary tests on the time series data were done using the pairwise correlation test, Augmented Dickey–Fuller and Phillips–Perron unit root tests. The results of the Bounds test and Johansen test indicate the presence of cointegration in the model. The A utoregressive Distributed Lagged (ARDL) model, Fully Modified Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) were used to estimate the parameter estimates of the regression model. Results indicate that foreign direct investment has a positive and significant impact on agricultural sector output. Specifically, the ARDL result shows the impact of foreign direct investment to be more in the short run (0.0024

Suggested Citation

  • Chukwudi Emmanuel Edeh & Chidera Godson Eze & Sonia Onyinye Ugwuanyi, 2020. "Impact of foreign direct investment on the agricultural sector in Nigeria (1981–2017)," African Development Review, African Development Bank, vol. 32(4), pages 551-564, December.
    • Handle: RePEc:bla:afrdev:v:32:y:2020:i:4:p:551-564
    DOI: 10.1111/1467-8268.12460
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    5. Linus Nyiwul & Niraj P. Koirala, 2022. "Role of foreign direct investments in agriculture, forestry and fishing in developing countries," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
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    7. Etian Ngobeni & Chiedza L. Muchopa, 2022. "The Impact of Government Expenditure in Agriculture and Other Selected Variables on the Value of Agricultural Production in South Africa (1983–2019): Vector Autoregressive Approach," Economies, MDPI, vol. 10(9), pages 1-17, August.

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