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Infrastructure Development and Economic Growth Nexus in Nigeria

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  • O. Owolabi-Merus

Abstract

The impact and significance of infrastructure development towards the economic growth of a country cannot be overemphasised. This is because it is a major component that is required to ensure an increase in domestic productivity and attract foreign direct investment (FDI) inflow. This study through the use of Ordinary Least Squares and Granger Causality econometric techniques investiages the infrastructural development and economic growth nexus in Nigeria. The former is proxied by Gross Fixed Capital Formation (GFCF) while the latter is proxied by Gross Domestic Product (GDP). The period under review is from 1983 to 2013 and the data for this study is obtained from the World Bank’s Africa Development Indicators. The empirical results from this study reveal that infrastructural development has a positive and statistically significant impact on Nigeria’s economic growth. However, the Granger Causality test connotes that there is no mutual correlation between both variables in Nigeria in the period under review.

Suggested Citation

  • O. Owolabi-Merus, 2015. "Infrastructure Development and Economic Growth Nexus in Nigeria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(1), pages 376-382, January.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:1:p:376-382
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    Cited by:

    1. Godday Uwawunkonye Ebuh & Ifeoma Betty Ezike & Tersoo Shimonkabir Shitile & Ebow Suleiman Smith & Timipre Mary Haruna, 2019. "The Infrastructure–Growth Nexus in Nigeria: A Reassessment," Journal of Infrastructure Development, India Development Foundation, vol. 11(1-2), pages 41-58, June.
    2. Ayeni, Oluwasegun David & Afolabi, Olarewaju Joseph, 2020. "Tax Revenue, Infrastructural Development and Economic Growth In Nigeria," MPRA Paper 99464, University Library of Munich, Germany, revised 2020.
    3. Maku Olukayode E. & Ajike Emmanuel O. & Chinedu Solomon, 2019. "Human Capital Development and Macroeconomic Performance in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach," Valahian Journal of Economic Studies, Sciendo, vol. 10(1), pages 51-64, July.

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