Open AccessCorrelation Between Manufacturing Sectors and Foreign Direct Investment
Author(s) -
Babatunde Afolabi,
Opeyeolu Timothy Laseinde,
Ifetayo Oluwafemi,
Oluwadmilare Daniel Atolagbe,
Jesusetemi Oluwafemi
Publication year - 2019
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1378/3/032005
Subject(s) - foreign direct investment , distributed lag , manufacturing sector , government (linguistics) , order (exchange) , inflation (cosmology) , variables , manufacturing , economics , government expenditure , monetary economics , business , international economics , macroeconomics , econometrics , finance , statistics , mathematics , linguistics , philosophy , physics , marketing , public finance , theoretical physics
The manufacturing sectors of nation’s economies have without doubt been noted as the chief driver of economic growth the world over. The connection between the Nigerian manufacturing sector and foreign direct investment (FDI) was assessed in this work. The study, in order to empirically examine how the variables are related in the long term and short term, utilised time series data spanning 36 years, while the autoregressive distributed lag (ARDL) and co-integration technique were used. From the result, it is seen that the dependent variables explained R 2 of 97% of the variations in manufacturing sector indicators (MFI), while Foreign direct investment, (FDI), Inflation rate (INF), government expenditure (GOE), and money supply (MSP) represent the independent variables. One of the recommendations of the study is that the federal government should consciously increase amount of foreign direct investments (FDI) made available to this all-important sector-manufacturing sector to boost its efficiency especially with respect to percentage impact on GDP and employment generation in Nigeria.