IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v9y2023i1d10.1186_s43093-023-00225-0.html
   My bibliography  Save this article

Industrial output growth and foreign direct investment in Nigeria

Author

Listed:
  • Sunday Anderu Keji

    (Federal University Oye-Ekiti
    University of Kwuazulu-Natal)

Abstract

This research study investigated the nexus between industrial output growth and foreign direct investment in Nigeria. It is a common belief that no nation is an island on its own; hence countries around the globe interchange economic activities across borders via various mutual business indentures. Notably, despite Nigeria’s foreign direct investment level in Africa, the country’s industrial output growth still falls short in recent years. Therefore, it is pertinent in this study to unravel why increasing Foreign Direct Investment inflow brings about slow industrial output growth in Nigeria. Interestingly, Autoregressive Distributed Lags (ARDL) and Cointegration and Error Correction Mechanisms (ECM) techniques and diagnostics checks were adopted to investigate whether there is long-run interaction between industrial output growth and foreign direct investments in Nigeria. Notably, post estimations tests were carried out to ascertain the validity of the models adopted in the study. The study showed a short-term and long-term relationship between Foreign Direct Investment and Industrial Output Growth in Nigeria. Therefore, FDI disclosed a negative time-path link with industrial output growth in Nigeria. This asserts that Nigeria's current slow output growth contradicts expected economic intuitions due to a negative link between FDI and industrial output growth, all things being equal. Consequently, the study recommended that a proactive policy framework could be used to promote industrialization via localization of industry across Nigeria. Also, policymakers should adopt protectionist international trade laws to expand the local productivity base.

Suggested Citation

  • Sunday Anderu Keji, 2023. "Industrial output growth and foreign direct investment in Nigeria," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    • Handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00225-0
    DOI: 10.1186/s43093-023-00225-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-023-00225-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s43093-023-00225-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    2. Oyegoke, Ebunoluwa O. & Aras, Osman Nuri, 2021. "Impact of Foreign Direct Investment on Economic Growth in Nigeria," MPRA Paper 108348, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ilo:ilowps:366690 is not listed on IDEAS
    2. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    3. Heijs, Joost, 2003. "Freerider behaviour and the public finance of R&D activities in enterprises: the case of the Spanish low interest credits for R&D," Research Policy, Elsevier, vol. 32(3), pages 445-461, March.
    4. Jeffrey Frankel, 2014. "Mauritius: African Success Story," NBER Chapters, in: African Successes, Volume IV: Sustainable Growth, pages 295-342, National Bureau of Economic Research, Inc.
    5. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    6. Lutz Arnold & Christian Bauer, 2009. "On the growth and welfare effects of monopolistic distortions," Journal of Economics, Springer, vol. 97(1), pages 19-40, May.
    7. Yew-Kwang Ng & Xiaokai Yang, 2005. "Specialization, Information, And Growth: A Sequential Equilibrium Analysis," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 20, pages 447-474, World Scientific Publishing Co. Pte. Ltd..
    8. Loebbing, Jonas, 2018. "An Elementary Theory of Endogenous Technical Change and Wage Inequality," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181603, Verein für Socialpolitik / German Economic Association.
    9. Grimaud, Andre & Rouge, Luc, 2003. "Non-renewable resources and growth with vertical innovations: optimum, equilibrium and economic policies," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 433-453, March.
    10. Liliana Meza-González & Jaime Marie Sepulveda, 2019. "The impact of competition with China in the US market on innovation in Mexican manufacturing firms," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-21, December.
    11. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    12. van de Klundert, T.C.M.J. & Smulders, J.A., 1991. "Reconstructing growth theory : A survey," Other publications TiSEM 19355c51-17eb-4d5d-aa66-b, Tilburg University, School of Economics and Management.
    13. Tung Liu & Kui-Wai Li, 2008. "Revisiting Solow’s Decomposition of Economic and Productivity Growth," Working Papers 200805, Ball State University, Department of Economics, revised Dec 2008.
    14. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    15. Johannes W. Fedderke & John M. Luiz, 2005. "Does Human Generate Social and Institutional Capital? Exploring Evidence From Time Series Data in a Middle Income Country," Working Papers 029, Economic Research Southern Africa.
    16. Basso, Henrique S. & Jimeno, Juan F., 2021. "From secular stagnation to robocalypse? Implications of demographic and technological changes," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 833-847.
    17. Martha Denisse Pierola & Ana Margarida Fernandes & Thomas Farole, 2018. "The role of imports for exporter performance in Peru," The World Economy, Wiley Blackwell, vol. 41(2), pages 550-572, February.
    18. Cristiana & Teodora Borota, 2011. "World Trade Patterns and Prices: The Role of Productivity and Quality Heterogeneity," Working papers 19, National Bank of Serbia.
    19. Luis Garicano & Thomas N. Hubbard, 2016. "The Returns to Knowledge Hierarchies," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 32(4), pages 653-684.
    20. Robert J. Shiller & Stefano Athanasoulis, 1995. "World Income Components: Measuring and Exploiting International Risk Sharing Opportunities," NBER Working Papers 5095, National Bureau of Economic Research, Inc.
    21. Marktanner Marcus & Makdisi Samir, 2008. "Development against All Odds? The Case of Lebanon," Review of Middle East Economics and Finance, De Gruyter, vol. 4(3), pages 101-133, September.

    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:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00225-0. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.