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Capital Flow Components and Industrial Sector Performance in Nigeria

Author

Listed:
  • Olunkwa Chidi Ndubuisi

    (University of Lagos)

  • Shobande Olatunji Abdul

    (University of Lagos)

Abstract

The study focused on capital flow components and industrial performance in Nigeria for theperiod 1980 and 2016. Furthermore, VEC Model is used for the study, while granger causality testis employed to examine the causal link between capital flow components and industrialperformance proixed with industry value added. The result affirm that long-run and short-runrelationship exists between capital flow components and industrial performance, and no causalityexist between workers’ remittance, official development assistance and industry valued, althoughunidirectional causality exist between foreign capital inflow and industry value added. In addition,the paper recommend that for there to be sustainable improvement in the industrial sector,government have to urgently address the issue of insecurity and policy inconsistency so as to allowfree flow of capital, workers’ remittance and foreign investors confidence into the country.

Suggested Citation

  • Olunkwa Chidi Ndubuisi & Shobande Olatunji Abdul, 2018. "Capital Flow Components and Industrial Sector Performance in Nigeria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 48-57, July.
    • Handle: RePEc:ovi:oviste:v:xviii:y:2018:i:1:p:48-57
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Industry value added; foreign capital inflow; Workers’ remittance; Official Development Assistance;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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