Open AccessSectoral analysis of foreign direct investment and growth in Nigeria
Author(s) -
David Orogwu,
Segun Fakoyode,
Mohammed Itopa,
Ahmed Abdulbasit
Publication year - 2021
Publication title -
applied journal of economic managemnet and social sciences
Language(s) - English
Resource type - Journals
ISSN - 2811-1613
DOI - 10.53790/ajmss.v2i1.4
Subject(s) - foreign direct investment , distributed lag , economics , investment (military) , monetary economics , international economics , macroeconomics , politics , political science , law , econometrics
The study conducted a sectoral analysis of the contribution of foreign direct investment on Nigeria economy between 1980-2019. Time series data from Central Bank of Nigeria and World Bank Development Indicators was used to estimate the relationship using Auto Distributed Lag Model (ARDL). It was revealed that foreign direct investment not only exert a direct positive effect on the aggregate growth rate of Nigeria economy but also exert a positive indirect effect through labour. It was also discovered that agriculture sector is the only sector that does not enjoy significant contribution of foreign direct investment in Nigeria while petroleum and Gas experience the greatest growth attributable to foreign direct investment in Nigeria. The study contributed to literature by not only examining the indirect effect of foreign direct investment on Nigeria aggregate growth rate through labour but also the effect of foreign direct investment on the sector-by-sector growth rate.