IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2023i2p64-73.html
   My bibliography  Save this article

Gross Capital Formation, Infrastructure, and Economic Development in Nigeria

Author

Listed:
  • Adegboyega Samson Opadeji

    (Dominion University Ibadan)

  • Oladimeji Olaniyi

    (Olabisi Onabanjo University)

  • Adewale Mathew Adekanmbi

    (Nigeria)

  • Joseph Oluremi Olubitan

    (Dominion University Ibadan)

Abstract

In Nigeria, the reduction in capital formation and the extent to which the dismal state of most infrastructure facilities, as well as their state of disrepair, impair the nation’s growth potential are relatively unknown. Given this, this study utilizes the Johansen co-integration test and the Vector Error Correction Model to analyze the effects of gross capital formation and infrastructure in the development of Nigeria’s economy from 1991 to 2021. The co-integration result revealed that the variables have a long-run relationship while the VECM result revealed that gross capital formation has not significantly impacted economic development while infrastructure had a significant positive effect on economic development in Nigeria during the study period. Based on the findings, the study recommends that the government and private sectors should collaborate so as to provide an enabling environment that will enhance capital investments in the economy. Also, gross capital formation should be efficiently channeled with a sizable amount accorded to infrastructural development which in turn translates to economic development.

Suggested Citation

  • Adegboyega Samson Opadeji & Oladimeji Olaniyi & Adewale Mathew Adekanmbi & Joseph Oluremi Olubitan, 2023. "Gross Capital Formation, Infrastructure, and Economic Development in Nigeria," EuroEconomica, Danubius University of Galati, issue 2(42), pages 64-73, November.
    • Handle: RePEc:dug:journl:y:2023:i:2:p:64-73
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/EE/article/view/2490/2697
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2023:i:2:p:64-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.