IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v4y2014i8p234-242.html
   My bibliography  Save this article

Impact of Foreign Direct Investment on Nigeria Economic Growth

Author

Listed:
  • Adeleke Kunle M.
  • Olowe S.O
  • Fasesin Oladipo Oluwafolakemi

Abstract

The study analyzed the impact of foreign direct investment on Nigeria economic growth over the period of 1999-2013. The main type of data used in this study is secondary; sourced from various publications of Central Bank of Nigeria, such as; Statistical Bulletin, Annual Reports and Statement of Accounts. The regression analysis of the ordinary least square (OLS) is the estimation technique that is being employed in this study to determine the relationship between and impact of the Direct Foreign Investment on economic growth. The findings revealed that economic growth is directly related to inflow of foreign direct investment and it is also statistical significant at 5% level which implies that a good performance of the economy is a positive signal for inflow of foreign direct investment. This implies that foreign direct investment is an engine of economic growth. The paper recommended that government should liberalize the foreign sector in Nigeria so that all barriers to trade such as arbitrary tariffs; import and export duties and other levies should be reduced so as to encourage investors.

Suggested Citation

  • Adeleke Kunle M. & Olowe S.O & Fasesin Oladipo Oluwafolakemi, 2014. "Impact of Foreign Direct Investment on Nigeria Economic Growth," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 234-242, August.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:8:p:234-242
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Impact_of_Foreign_Direct_Investment_on_Nigeria_Economic_Growth.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Impact_of_Foreign_Direct_Investment_on_Nigeria_Economic_Growth.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin Honglin Zhang, 2001. "How does foreign direct investment affect economic growth in China?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 679-693, November.
    2. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    3. Durham, J.B.J. Benson, 2004. "Absorptive capacity and the effects of foreign direct investment and equity foreign portfolio investment on economic growth," European Economic Review, Elsevier, vol. 48(2), pages 285-306, April.
    4. KH Zhang, 2001. "Does Foreign Direct Investment Promote Economic Growth? Evidence From East Asia And Latin America," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 175-185, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tahiri, Noor Rahman, 2017. "Impact of Foreign Direct Investment on Economic of Afghanistan," MPRA Paper 82264, University Library of Munich, Germany, revised 29 Oct 2017.
    2. Wani, Mr. Nassir Ul Haq & Rehman, Mr. Noor, 2017. "Determinants of FDI in Afghanistan: An Empirical Analysis," MPRA Paper 81975, University Library of Munich, Germany, revised 03 May 2016.
    3. Ikechukwu A. ACHA & Emmanuel IKPE MICHAEL & Joseph M. ESSIEN, 2017. "Nigeria’s Investment Environment: Issues of Economic Growth and Development," Expert Journal of Finance, Sprint Investify, vol. 5, pages 1-11.
    4. Manasseh Charles O. & Nwakoby Ifeoma C. & Okanya Ogochukwu C. & Ifediora Chuka U. & Nzidee Williams A., 2023. "The Impact of Foreign Direct Investment and Oil Revenue on Economic Growth in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(3), pages 61-85, September.
    5. Bayissa Badada & G. Delina & Sun Baiqing & Ramaswamy Krishnaraj, 2023. "Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment," SAGE Open, , vol. 13(1), pages 21582440231, March.
    6. Emmanuel I. MICHAEL & Ikechukwu A. ACHA & Joseph Michael ESSIEN, 2017. "Nigeria’s Investment Environment: Issues of Economic Growth and Development," Expert Journal of Finance, Sprint Investify, vol. 5(1), pages 1-11.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhavesh Garg & Pravakar Sahoo, 2021. "DO DIFFERENT TYPES OF CAPITAL INFLOWS HAVE DIFFERENTIAL IMPACT ON OUTPUT? Evidence from Time series and Panel Analysis," IEG Working Papers 443, Institute of Economic Growth.
    2. Oktay KIZILKAYA & Ahmet AY & Gökhan AKAR, 2016. "Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 127-140, Autumn.
    3. E. M. Ekanayake & John R. Ledgerwood, 2010. "How Does Foreign Direct Investment Affect Growth In Developing Countries? An Empirical Investigation," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(3), pages 43-53.
    4. Oktay KIZILKAYA & Ahmet AY & Gökhan AKAR, 2016. "Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 127-140, Autumn.
    5. Delgado, Michael S. & McCloud, Nadine & Kumbhakar, Subal C., 2014. "A generalized empirical model of corruption, foreign direct investment, and growth," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 298-316.
    6. Shaukat, Badiea & Zhu, Qigui & Khan, M. Ijaz, 2019. "Real interest rate and economic growth: A statistical exploration for transitory economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 534(C).
    7. Khan, M.A. & Samad, G., 2010. "Intellectual Property Rights And Foreign Direct Investment: Analysis Of 14 South And South East Asian Countries, 1970-2005," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(1).
    8. Mohd IRSHAD & Syed Hasan QAYED, 2022. "Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(631), S), pages 107-124, Summer.
    9. Aneta Bobeni? Hinto?ová, 2019. "Does inward foreign direct investment influence macroeconomic performance? A case of Slovakia," Proceedings of International Academic Conferences 9811998, International Institute of Social and Economic Sciences.
    10. Mei Wen, 2007. "Foreign direct investment, regional market conditions and regional development," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 125-151, January.
    11. Ausloos, Marcel & Eskandary, Ali & Kaur, Parmjit & Dhesi, Gurjeet, 2019. "Evidence for Gross Domestic Product growth time delay dependence over Foreign Direct Investment. A time-lag dependent correlation study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 527(C).
    12. Kottaridi, Constantina & Stengos, Thanasis, 2010. "Foreign direct investment, human capital and non-linearities in economic growth," Journal of Macroeconomics, Elsevier, vol. 32(3), pages 858-871, September.
    13. Yoon Jung Choi & Jungho Baek, 2017. "Does FDI Really Matter to Economic Growth in India?," Economies, MDPI, vol. 5(2), pages 1-9, June.
    14. Abdel-Latif, Hany, 2019. "FDI response to political shocks: What can the Arab Spring tell us?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 24(C).
    15. Bibhuti Sarker & Farid Khan, 2020. "Nexus between foreign direct investment and economic growth in Bangladesh: an augmented autoregressive distributed lag bounds testing approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-18, December.
    16. SBIA, Rashid & Al Rousan, Sahel, 2015. "Does Financial Development Induce Economic Growth in UAE? The Role of Foreign Direct Investment and Capitalization," MPRA Paper 64599, University Library of Munich, Germany.
    17. Mouna Gammoudi & Mondher Cherif & Simplice Asongu, 2016. "FDI and Growth in the MENA countries: Are the GCC countries Different?," Working Papers of the African Governance and Development Institute. 16/015, African Governance and Development Institute..
    18. Nabila Asghar & Samia Nasreen & Hafeez ur Rehman, 2012. "Relationship between FDI and Economic Growth in Selected Asian Countries: A Panel Data Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 84-96, February.
    19. Aurangzeb Zeb & Thanasis Stengos, 2013. "The Role of Foreign Direct Investment (FDI) in a Dualistic Growth Framework: An Application of Smooth Coefficient Semi-parametric Approach," Working Paper series 55_13, Rimini Centre for Economic Analysis.
    20. Burcu Turkcan & I. Hakan Yetkiner, 2010. "Endogenous determination of FDI growth and economic growth: the OECD case," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 5(4), pages 409-429.

    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:hur:ijarbs:v:4:y:2014:i:8:p:234-242. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    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.