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Trade Openness, Foreign Direct Investment And Life Expectancy In Nigeria

Author

Listed:
  • AIGHEYISI Oziengbe Scott

    (Department of Economics, University of Benin, Benin City, Nigeria)

  • OLIGBI O. Blessing

    (Department of Economics & Development Studies, Igbinedion University, Okada, Edo State, Nigeria. (Corresponding Author))

Abstract

The paper examines the effects of trade openness, particularly, import openness and FDI inflows on life expectancy in Nigeria using annual time series data spanning the period from 1981 to 2017. The methodology involves the ARDL approach to cointegration and error correction modeling. The empirical evidence indicates that while import openness adversely affects life expectancy in the country, the effect of FDI inflows is positive, but not significant. Further evidence are that increase in the level of per capita income and government recurrent expenditure in health enhance life expectancy, while inflation adversely affects it. In view of the empirical evidence, the paper recommends, as measures to enhance life expectancy in Nigeria, imposition of restrictions on some categories of imports especially consumer goods (while encouraging domestic production of same through investment-friendly policies, programmes and initiatives, to meet domestic demand for consumer goods), deliberate and conscious effort to enhance the level of per capita real income through encouragement of investment to boost employment, increases in general government expenditure and, expenditure in health in particular, and control of inflation by the monetary and fiscal authorities using appropriate policy instruments.

Suggested Citation

  • AIGHEYISI Oziengbe Scott & OLIGBI O. Blessing, 2019. "Trade Openness, Foreign Direct Investment And Life Expectancy In Nigeria," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 351-365, December.
    • Handle: RePEc:ora:journl:v:1:y:2019:i:2:p:351-365
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Trade Liberalisation; Globalisation; Import Openness; Foreign Direct Investment; Quality of Life; Life Expectancy;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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