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Foreign Private Investment And Economic Growth In Nigeria

Author

Listed:
  • Tokunbo S. OSINUBI

    (Department of Economics, Division of Business, Social & Behavioral Studies, Prince George’s Community College, Largo Road, Largo, Maryland, USA,)

  • Lloyd A. AMAGHIONYEODIWE

    (Department of Economics, Faculty of the Social Sciences, University of the West Indies, Mona Campus, Kingston, Jamaica,)

Abstract

Despite the increased flow of investment to developing countries in particular, Sub-Sahara African (SSA) countries, Nigeria inclusive, are still characterized by low per-capita income, high unemployment rates and low and falling growth rates of GDP, problems which foreign private investment are theoretically supposed to solve. The Nigerian government has been focusing on policies that will help attract foreign investors and yet the economy is still dwindling. It is against this background, that this study analyzed the direction and significance of the effect of foreign private investment on economic growth in Nigeria. Secondary data for the period 1970 to 2005 was used for the study. Among the findings was that Foreign Private Investment, Domestic Investment growth and Net Export growth were positively related to economic growth in Nigeria. More so, the Foreign Private Investment, Domestic Investment growth, Net export growth and the lagged error term were statistically significant in explaining variations in Nigeria's economic growth.

Suggested Citation

  • Tokunbo S. OSINUBI & Lloyd A. AMAGHIONYEODIWE, 2010. "Foreign Private Investment And Economic Growth In Nigeria," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 5, pages 105-127, June.
    • Handle: RePEc:aic:revebs:y:2010:i:5:osinubit
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    References listed on IDEAS

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    Cited by:

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    5. Kayode Oluwadamilare Bankole & Israel O. Ukolobi & Onyuka Felix Mcdubus, 2020. "The Impacts Of Monetary Policies On Savings And Investment In Developing Economies: A Case Study," Working Papers hal-02520027, HAL.
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    7. Hanna Godlewska-Majkowska & Agnieszka Komor & Magdalena Typa, 2016. "Special Economic Zones as Growth and Anti-growth Poles as Exemplified by Polish Regions," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(4), pages 189-212.
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    9. Alimi, R. Santos & Ibironke, Adesola, 2012. "Dolado - Lütkepohl Causality Tests between Foreign Direct Investment and Economic Growth in Nigeria," MPRA Paper 49277, University Library of Munich, Germany.
    10. Raza, Syed Ali & Sabir, Muhammad Sarwar & Mehboob, Farhan, 2011. "Capital inflows and economic growth in Pakistan," MPRA Paper 36790, University Library of Munich, Germany.
    11. Tony Ikechukwu Nwanji & Kerry E. Howell & Sainey Faye & Adegbola Olubukola Otekunrin & Damilola Felix Eluyela & Adedoyin Isola Lawal & Sunday Chinedu Eze, 2020. "Impact of Foreign Direct Investment on the Financial Performance of Listed Deposit Banks in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 323-347, April.
    12. Samuel Adams & Daniel Sakyi & Eric Evans Osei Opoku, 2016. "Capital Inflows and Domestic Investment in Sub-Saharan Africa," Foreign Trade Review, , vol. 51(4), pages 328-343, November.
    13. Panshak Yohanna, 2013. "Macroeconomic Determinants of Foreign Direct Investment and Economic Transformation in Nigeria, 1981–2010: An Empirical Evidence," Insight on Africa, , vol. 5(1), pages 55-82, January.
    14. Acha, Ikechukwu A & Essien, Joseph M, 2018. "The Economic Growth Imperative of Foreign Portfolio Investment for Nigeria," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 3(6), pages 71-77, June.
    15. Kunofiwa Tsaurai, 2017. "Is foreign Portfolio Equity Investment Inspired Growth Hypothesis Relevant in Emerging Markets?," EuroEconomica, Danubius University of Galati, issue 2(36), pages 78-90, November.
    16. Al Akbari, Salah, 2013. "Proposing Architecture and Process Governance for Risk Mitigation in Organizational Change : a Case Study of the Flight Test and Development Centre (FTC), A Division of the UAE Armed Forces," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/12334 edited by Poix, Michel.
    17. Olufemi Saibu, 2014. "Capital Inflow and Economic Growth Nexus in Nigeria: The Role of Trade Openness," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 6(6), pages 99-113, December.
    18. Courage Mlambo, 2022. "The impact of international portfolio investment on economic growth: the case of selected African states," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 151-159, December.
    19. Mourao, Paulo Reis, 2018. "What is China seeking from Africa? An analysis of the economic and political determinants of Chinese Outward Foreign Direct Investment based on Stochastic Frontier Models," China Economic Review, Elsevier, vol. 48(C), pages 258-268.

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