Skip to main content

FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: A TEST OF GRANGER CAUSALITY IN NIGERIA - Usman, Ojonugwa and Tom O. Zakari

FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: A TEST OF GRANGER
CAUSALITY IN NIGERIA
Usman, Ojonugwa and Tom O. Zakari

Department of Accounting Education Federal College of Education (Technical)  Potiskum, Yobe State – Nigeria, House of Representatives, National Assembly Abuja FCT – Nigeria.
EMAIL: dekoomson4u@yahoo.co.uk, hon.tomzakari@yahoo.com

ABSTRACT

This study empirically examined the causal relationship between foreign direct investment and economic growth in Nigeria. Time-Series dataobtained from the Central Bank of Nigeria was used for the period 1961–2010. The results of the ADF unit root test indicated that all the variables included were
non-stationary at their levels but integrated of order one, I(1). The outcome of the cointegration tests revealed a stable long-run equilibrium between FDI and economic growth. Pairwise Granger Causality tests indicated that there was only a one-way causality, running from economic growth (measured by GDP at current basic price) to FDI in Nigeria. Therefore, the study recommended that a radical change in thinking has to take place among the policy makers in Nigeria to first stimulate economic growth as the surest way to properly attract FDI inflows.

Keywords: Foreign Direct Investment, GDP, Granger Causality, cointegration, Augmented Dickey-Fuller

INTRODUCTION
Foreign direct investment as a component of international capital flows is widely regarded as a single source of external finance for developing countries in the recent times. The developing countries generally lack sufficient capital to boost economic growth and development, hence foreign direct investment is needed to augment domestic investment to enable the country carryout effective economic development programmes so as to transform the nation into an industrialized economy as well as raising standard of living of the people. To this extent, most countries strive to attract foreign direct investment as echoed in the Millennium DevelopmentGoals (MDGs), New Partnership for Africa’s Development (NEPAD) and the Nigeria’s own long-term development plan – Vision 20:2020 (Ayanwale, 2007; Soludo, 2007).
Read More>>

Comments

Post a Comment

Popular posts from this blog

SCIENCE TEACHER EDUCATION: A PANACEA FOR CLIMATE CHANGE AND IMPLICATION FOR MATHEMATICS TEACHER EDUCATION

SCIENCE TEACHER EDUCATION: A PANACEA FOR CLIMATE CHANGE AND IMPLICATION FOR MATHEMATICS TEACHER EDUCATION Aliyu M. Waziri, Udonsa A. Ezekiel and 3 Esaduwha S. Obukohwo 1&2 Department of Mathematics and 3 Department of Physics Federal College of Education, Yola, Adamawa State, Nigeria ABSTRACT In this paper, mathematics is used for describing, predicting and communicating climate change. We used the perspective of critical mathematics education to examine how mathematics is constructed in reporting climate change. We took into consideration the importance of mathematical modelling. Our discussion is referenced by a newspaper report and a policy document. In ourargument, human mathematical activity and the role of human activity in causing climate change are all largely invisible.  Mathematics education has an important role to play in making the invisible visible. Keywords: Climate, Mathematics Education, Mathematics Modelling.
Post a Comment
Read more

A SURVEY OF THE AWARENESS OF VACCINATING LOCAL CHICKENS (Gallus domesticus) WITHIN THE CENTRAL ZONE OF PLATEAU STATE

A SURVEY OF THE AWARENESS OF VACCINATING LOCAL CHICKENS ( Gallus domesticus) WITHIN THE CENTRAL ZONE OF PLATEAU STATE Biyal, D.H., Deshi, M.B; and Gochuk, Z.D. Plateau State College of Agriculture, Garkawa, Plateau State, Nigeria ABSTRACT The research was conducted to access the level of awareness and use of vaccines on local chickens (Gallus domesticus) within the central zone of Plateau State. Five (5) districts were randomly selected, one from each of the five LGA’s that make up the central zone of Plateau State. 400 questionnaires were distributed, filled and retrieved from the 5 LGAs, each with 80. The data was analyzed using simple percentage. Result showed that 177 (44.25%) of the respondents were poor subsistent farmers and civil servants make up only 80 (20.00%) that raise local chickens. One hundred and seventy nine, 179 (44.75%) of the respondents have been into it between 11 – 20 years, and those over 20 years were only 84% (21.00%). Only 84 (21.00%) out of t...
Post a Comment
Read more

PORT HARCOURTAVIATION INDUSTRY AND RURAL DEVELOPMENT: EMERGING TREND OF LIVELIHOOD APPROACH IN IKWERRE LOCAL GOVERNMENT AREA, RIVERS STATE, NIGERIA

PORT HARCOURTAVIATION INDUSTRY AND RURAL DEVELOPMENT: EMERGING TREND OF LIVELIHOOD APPROACH IN IKWERRE LOCAL GOVERNMENT AREA, RIVERS STATE, NIGERIA Eze Wosu Department of Sociology, Faculty of Social Sciences University of Port Harcourt,Port Harcourt, Nigeria Email : ewosu@yahoo.com ABSTRACT The study examined the livelihood conditions of the Ikwerre people since the establishment of the Port Harcourt Aviation Industry in Omagwe community. It was argued that the Port Harcourt Aviation was supposed to be a blessing to the indigene and inhabitants of the areas; rather it became more of a resource curse. Rather than enhancing the living condition of the people, it had transformed the socio-economic, political and cultural lives of the Omagwe communities into a state of abject poverty.
Post a Comment
Read more