ABSTRACT
The purposeofthisstudyistoexaminetheeffectofsectoralForeignDirectInvestment oneconomicgrowthinNigeriamakinguseoftimeseriesdatafortheperiod1981-2018. An Auto-regressive Distributed Lag (ARDL) technique (with emphasis on short run estimates)isusedtoexaminetherelationshipforseriesthatareI(0)andI(1).Thestudy considers five FDI sectors which include: Telecommunication infrastructures, oil, Agriculture,Manufacturing,Services andotherinfrastructuressectorsasitsvariables representingsectoralforeigndirectinvestmentwhileGrossDomesticProduct(GDP)is employedasaproxyforeconomicgrowth.
ThestudyobservesnolongrunrelationshipbetweensectoralFDIandeconomicgrowth. Hence,shortrunestimationwithoutaccountingforadjustmentmechanismisestimated. The results shows that telecommunication infrastructures FDI, Services FDI and other infrastructuresFDIaresignificantto economic growth. However,only Telecommunication infrastructures FDI spurs economic growth while Services FDI and otherinfrastructuresFDIdrageconomicgrowthinNigeria.
Conclusively,thisstudyrecommendsthatgovernmentshouldensurestable macroeconomicpoliciesasastabilizationtooltoprompttheattractionofmoreFDIinto Nigeriaanddependencyonforeigndirectinvestmentshouldremainlimited.
John, A (2021). EFFECT OF SECTORAL FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA. Afribary. Retrieved from https://track.afribary.com/works/effect-of-sectoral-foreign-direct-investment-on-economic-growth-in-nigeria
John, Agada "EFFECT OF SECTORAL FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA" Afribary. Afribary, 01 Apr. 2021, https://track.afribary.com/works/effect-of-sectoral-foreign-direct-investment-on-economic-growth-in-nigeria. Accessed 24 Nov. 2024.
John, Agada . "EFFECT OF SECTORAL FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA". Afribary, Afribary, 01 Apr. 2021. Web. 24 Nov. 2024. < https://track.afribary.com/works/effect-of-sectoral-foreign-direct-investment-on-economic-growth-in-nigeria >.
John, Agada . "EFFECT OF SECTORAL FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA" Afribary (2021). Accessed November 24, 2024. https://track.afribary.com/works/effect-of-sectoral-foreign-direct-investment-on-economic-growth-in-nigeria