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Foreign Direct Investment, Energy Infrastructure and Manufacturing Output in Nigeria

Author

Listed:
  • Ademola Onabote

    (Department of Economics, Landmark University, Omu Aran, Nigeria)

  • Ojamaliya Abuh

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Oduntun Emmanuel

    (Department of Mathematics, American University of Nigeria)

  • Oluwasegun Eseyin

    (Department of Economics, Landmark University, Omu Aran, Nigeria)

  • Victoria Okafor

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

Abstract

In recent years, developing countries like Nigeria with large human and natural resources have attracted huge investment leading to a rise in foreign investment into the Nigerian economy. To create the conditions that would attract more Foreign Direct Investment into the manufacturing subsector, the right infrastructure must be put in place. This study examined the relationship between Foreign Direct Investment, infrastructure and manufacturing output in Nigeria. Time series data between the periods of 1981-2016 was used. Johansen cointegration was used to assess the relationship between Nigeria's foreign direct investment, infrastructure, and production efficiency. The result showed that the explanatory variables and the manufacturing production in Nigeria have a long-run relationship. The relationship between foreign direct investment, infrastructure and manufacturing production in Nigeria is also found to be significant and positive. Following the finding of the study, specific policy recommendations were made to improve energy infrastructure for the manufacturing sector and keep foreign investment flowing into the economy.

Suggested Citation

  • Ademola Onabote & Ojamaliya Abuh & Oduntun Emmanuel & Oluwasegun Eseyin & Victoria Okafor, 2021. "Foreign Direct Investment, Energy Infrastructure and Manufacturing Output in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 163-169.
    • Handle: RePEc:eco:journ2:2021-03-20
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Direct Investment; Energy Infrastructure; Manufacturing output;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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