IDEAS home Printed from https://ideas.repec.org/a/pkp/ijobem/v8y2021i4p245-256id1280.html
   My bibliography  Save this article

Is Foreign Direct Investment the Way Forward for Manufacturing Sector Renaissance in Nigeria?

Author

Listed:
  • Ndibe Beatrice C
  • Ojiula Uchemefuna Ben
  • Asalu Emmanuel N

Abstract

The study was an attempt to investigate the relationship between foreign direct investments (FDI) and the manufacturing sector contribution to GDP in Nigeria. Specific objectives included finding out the direction of causality between FDI and the growth of the manufacturing sector; and establishing the relationship between FDI net inflows and manufacturing sector contribution to GDP. To achieve the objectives, two research questions and hypotheses were formulated. Secondary data sourced from World Bank Development Indicators were used. The Granger causality model and linear regression model were employed to test the hypotheses. The empirical implementation of the model made use of macro-economic data covering the period of 30 years (1990-2019). The result showed that there is a unidirectional causality from FDI to manufacturing sector contribution to GDP. This implies that manufacturing sector contribution to GDP was not as a result of FDI inflows to Nigeria. Further findings revealed a statistically no significant linear relationship between FDI net inflows and manufacturing sector contribution to GDP in Nigeria. The implication of the study is that the little contribution made by the manufacturing sector in Nigeria is not as a result of FDI net inflows, hence there is need for government and policy makers to consider policy options that will attract FDI to the manufacturing sector.

Suggested Citation

  • Ndibe Beatrice C & Ojiula Uchemefuna Ben & Asalu Emmanuel N, 2021. "Is Foreign Direct Investment the Way Forward for Manufacturing Sector Renaissance in Nigeria?," International Journal of Business, Economics and Management, Conscientia Beam, vol. 8(4), pages 245-256.
    • Handle: RePEc:pkp:ijobem:v:8:y:2021:i:4:p:245-256:id:1280
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/62/article/view/1280/1803
    Download Restriction: no
    File URL: https://archive.conscientiabeam.com/index.php/62/article/view/1280/5081
    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:pkp:ijobem:v:8:y:2021:i:4:p:245-256:id:1280. 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: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/62/ .

    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.