Open AccessIMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT SECTOR IN NIGERIA (1981-2018)
Author(s) -
Chukwudi Emmanuel Edeh,
Cyril Ogugua,
Clara Ndidiamaka Mbaeri,
Ebite Ogochukwu Njideka
Publication year - 2020
Publication title -
international journal of indian economic light
Language(s) - English
Resource type - Journals
ISSN - 2277-3142
DOI - 10.36713/epra3009
Subject(s) - foreign direct investment , openness to experience , international economics , economics , business , inflation (cosmology) , exchange rate , manufacturing sector , monetary economics , international trade , macroeconomics , psychology , social psychology , physics , theoretical physics
The objective of the study is to examine the impact of FDI on exports in Nigeria for the period 1981-2018. Specifically, twolinear equations were formulated to trace the impact of FDI on oil sector and non-oil sector. The explanatory variables inthe study were exchange rate, GDP, degree of openness, FDI, and inflation. The ADF technique was used to test for thestationarity of the time series data. The results of the Error Correction models reveal that there is a positive and significant(P(FDI) = 0.000) relationship between FDI and oil export in Nigeria. One per cent increase in FDI leads to 0.47 per centincrease in oil export over the period under study. There is a positive and significant (P(FDI) = 0.005) relationship betweenFDI and non-oil export in Nigeria. One per cent increase in FDI leads to 0.31 per cent increase in non-oil export over theperiod under study. The impact of FDI on the oil export is higher than the non-oil sector by 0.16 per cent. The studyrecommends for more aggressive policies to attract FDI in the oil sector to be pursued by the government. Obstacles to doingbusiness in Nigeria should be removed.KEYWORDS: Foreign direct investment, oil export, non-oil export