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Foreign Direct Investment, Agricultural Output and Nigeria’s Economic Growth

Author

Listed:
  • Hezekiah Amamizo Ogunnubi
  • Christiana Odunayo Oladejo
  • Chidiebere Jesse Ugwu

Abstract

Purpose: This study assessed the impact of foreign direct investment, agricultural output on Nigeria’s economic growth. Design/methodology approach: Secondary data used for the work was obtained from the Central Bank of Nigeria statistical bulletin 2024, National Bureau of Statistics and World Development Index WDI.The scope of study spanned from 1981 to 2024. The Autoregressive Distributed Lag (ARDL) was used to run the data analysis and it was discovered that the foreign direct investment had a negative relationship with the economic growth in the short run and a positive relationship in the long run. Inflation and interest rate were also unfavorable in the short run and long run. Findings: The study concluded that foreign direct investment has both positive and negative effects on the economic growth in the short run and long run while the agricultural output has positive effects on economic growth in the long run. Practical implications: The suggestions were that the government should fund the agricultural sector and tackle insecurity in order to attract foreign investors. Originality value:

Suggested Citation

  • Hezekiah Amamizo Ogunnubi & Christiana Odunayo Oladejo & Chidiebere Jesse Ugwu, 2026. "Foreign Direct Investment, Agricultural Output and Nigeria’s Economic Growth," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 125-146.
    • Handle: RePEc:ers:ijebaa:v:xiv:y:2026:i:2:p:125-146
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    References listed on IDEAS

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    1. Radovan Kastratović, 2024. "The impact of foreign direct investment on agricultural exports: The evidence from developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 33(2), pages 276-293, February.
    2. Ibrahim Emeka, 2024. "Foreign Direct Investment (FDI) And Economic Growth in Nigeria," Journal of Poverty, Investment and Development, IPRJB, vol. 9(1), pages 13-25.
    3. Gbenro Matthew Sokunbi & Adebayo Akanbi Johnson & Olatunde Olaide Atanda & Timothy Ayomitunde Aderemi, 2023. "Foreign Direct Investment and Employment in Agricultural Sector in Nigeria," EuroEconomica, Danubius University of Galati, issue 2(13), pages 44-53, August.
    4. Liu, Bo & Liu, Jincheng, 2025. "Did the integrity transition promote economic growth? Empirical research based on the perspective of anti-corruption approaches," International Review of Economics & Finance, Elsevier, vol. 101(C).
    5. Fagbemi, Fisayo & Oloba, Olusola Mathew & Olufolahan, Toyin Joseph & Oke, Dorcas Funmilola & Nzeribe, Geraldine Ejiaka & Ozoh, Joan Nwamaka, 2026. "Climate change vulnerability and foreign direct investment attraction: The criticality of climate change readiness for Nigeria," Innovation and Green Development, Elsevier, vol. 5(2).
    6. Oyegoke, Ebunoluwa O. & Aras, Osman Nuri, 2021. "Impact of Foreign Direct Investment on Economic Growth in Nigeria," MPRA Paper 108348, University Library of Munich, Germany.
    7. Badu-Prah, Charlotte & Agyeiwaa-Afrane, Akua & Gidiglo, Ferguson K. & Srofenyoh, Francis Y. & Agyei-Henaku, Kofi Aaron A-O. & Djokoto, Justice Gameli, . "Trade, Foreign Direct Investment and Agriculture in Developing Countries," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(3).
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    More about this item

    Keywords

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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