The assessment of the influence of foreign direct investment and domestic investment on the economic growth of Nigeria (1981-2015)

ABSTRACT

The study was carried out to determine the influence of Foreign Direct investment (FDI) and Domestic investment (DI) on the economic growth of Nigeria. The study employed Augmented Dickey-Fuller test to test for time series property of the data. Johansen co-integration was also examined and consequently error correction model was employed. Ordinary Least Square (OLS) method was used in the data analysis. Findings show that indeed FDI impacts significantly on economic development. It was also seen that domestic investment didn’t impact significantly in the economic growth of Nigeria during the period under review. The coefficient of determination (R2) shows that the independent variables explain up to 59% of the dependent variable (RGDP). The data for this study were secondary data from the Central Bank of Nigeria. On that basis of the above findings, we made the following recommendations among others: That Government should make available adequate infrastructure and regulatory framework that will be conducive for doing business in Nigeria. There also need for regular power supply because it is the most important infrastructure required for doing business in any economy. Therefore, government should endeavor to ensure constant power supply so as to reduce the cost of doing business in Nigeria which no doubt will encourage domestic and foreign investment in Nigeria.

                             

                                 TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgements

Table of Content

Abstract  

CHAPTER ONE: INTRODUCTION

1.0 Introduction

1.1 Background of Study…………………………………….

1.2 Statement of the Problem………………………………

1.3 Objectives of the Study…………………………………..

1.4 Statement of the Hypothesis…………………………….

1.5 Scope and Limitations of the Study………………………

1.6 Significance of the Study…………………………………..

1.7 Organization of the Study…………………………….

CHAPTER TWO: LITERATURE REVIEW.

2.0 Literature Review

2.1 Theoretical Literature…………………………………………

2.1.0 Keynesian Theory of Investment…………………………….

2.1.1 Types of Investment………………………………………

2.1.2 Theories of Growth………………………………………..

2.1.3 Accelaratiob Theories of Invesment

2.1.4 Harrod-Domar Theory of Growth……………………….

2.1.5 The New Growth Theory……………………………………….

2.1.6 The Big Push Theory…………………………………………..

2.1.7 The Theory of Balanced Growth…………………………….

2.1.8 Unbalanced Growth Theory………………………………..

2.1.9 Capital Accumulation………………………………….

2.1.10 The Role of Foreign and Domestic Investment (Gross capital formation) in an Economy……………………………………………………………..

2.1.11 Industrial Development in Nigeria and Foreign Direct Investment……….

2.2 Empirical Literature Review…………………………………………………

2.2.0 Problems and Risks of Investment in Nigeria…………………………….

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Research Methodology

3.1 Introduction…………………………………………………

3.2 Research Design………………………………………………

3.3 Model Specification……………………………………………..

3.4 Apriori Expectation……………………………………………..

3.5 Research Methodology………………………………………….

3.5.0 The Unit Root Test (Augmented Dickey Fuller)……………………..

3.5.1 Statistical Test First Order……………………………………………….

3.5.2 Econometric (Second Order) Test………………………………………..

3.6 Data Source……………………………………………………….

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF RESULTS

4.0 Presentation and analysis of result

4.1 The Unit Root Test (Augmented Dickey Fuller)………………….

4.2 Co-integration Test……………………………………………

4.3 Result of Error Correction Model…………………………….

4.4 Estimates of Regression Result………………………………

4.4.0 Statistical Evaluation of Regression Results…………………..

4.4.1 The Students T-test……………………………………………

4.4.2 Apriori Expectation…………………………………………..

4.4.3 F-test………………………………………………………..

4.4.4 The Coefficient of Determination ()………………………..

4.5 Econometric Evaluation of Results……………………………………..

4.5.0 Test for Auto Correlation…………………………………………….

4.5.1 Heteroscedasticity Test………………………………………………….

4.6 Hypothesis Test……………………………………………………………

CHAPTER FIVE: SUMMARY, RECOMENDSTIONS AND CONCLUSION

 5.0 Summary of Findings, Policy Recommendations and Conclusion

5.1 Summary of Findings 

5.2 Policy Recommendations………………………………………………..

5.3 Conclusion……………………………………………………………….

Reference ……………………………………………………………….

Bibliography

Appendices