IDEAS home Printed from https://ideas.repec.org/a/aoj/ajeaer/v7y2020i2p136-146id1736.html
   My bibliography  Save this article

The Impact of Capital Inflows on Economic Growth in Nigeria: Empirical Evidence from Wavelet Coherence Technique

Author

Listed:
  • Tomiwa Sunday Adebayo

Abstract

The study explores the interaction between capital inflows and economic growth in Nigeria using data between 1981 and 2018. This study utilized the ARDL techniques to catch the short and long-run dynamics among variables utilized, and the granger causality test was utilized to ascertain the direction of causality. Furthermore, the wavelet coherence, a recent and more powerful technique was deployed to verify the co-movement and causality among the variables. Findings from the ARDL techniques depict; (i) there is cointegration among the variables in the long-run; (ii) Gross capital formation impact economic growth positively (iii) foreign aid and FDI inflows have an insignificant impact on economic growth. The Granger causality test reveals; (i) feedback causality between gross capital formation and economic growth; (ii) unidirectional causality was found running from FDI inflows and foreign aid to economic growth. The wavelet coherence provides supportive evidence for the ARDL and Granger causality test. Based on these findings, recommendations were suggested.

Suggested Citation

  • Tomiwa Sunday Adebayo, 2020. "The Impact of Capital Inflows on Economic Growth in Nigeria: Empirical Evidence from Wavelet Coherence Technique," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(2), pages 136-146.
    • Handle: RePEc:aoj:ajeaer:v:7:y:2020:i:2:p:136-146:id:1736
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/AJEER/article/view/1736/1532
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:ajeaer:v:7:y:2020:i:2:p:136-146:id:1736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/AJEER/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.