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Foreign Direct Investment and Inclusive Growth in Nigeria: The Role of the Financial Sector Development

Author

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  • Emeka Nkoro
  • Aham Kelvin Uko

Abstract

This study examined the role of the domestic financial sector development in the relationship between foreign direct investment (FDI) inflows and inclusive growth in Nigeria over the period, 1981-2020 using annual time series. Empirically, the result reveals that the FDI exerted a significant positive effect on inclusive growth when the domestic financial sector has reached a certain minimum level of development. The result further shows that the FDI alone has a significant negative effect on inclusive growth. This is evidence that the domestic financial sector development is a pre-condition for FDI to effectively promote inclusive growth in Nigeria.

Suggested Citation

  • Emeka Nkoro & Aham Kelvin Uko, 2022. "Foreign Direct Investment and Inclusive Growth in Nigeria: The Role of the Financial Sector Development," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 13(3), pages 28-42, July.
    • Handle: RePEc:jfr:ijfr11:v:13:y:2022:i:3:p:28-42
    DOI: 10.5430/ijfr.v13n3p28
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    References listed on IDEAS

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