THE DYNAMIC LINKAGES BETWEEN INVESTMENT AND SUSTAINABLE ECONOMIC GROWTH IN NIGERIA
- Benedict Anayochukwu Ozurumba
- ( paper pages. 1 - 24 )
Abstract
The paper empirically analysed the econometric dynamics of foreign and domesticinvestments for sustainable growth in Nigeria. In carrying out the investigation, ex-post research method, focusing on secondary sourced data on foreign directinvestment (FDI), foreign portfolio investment (FPI) and domestic investment (DIN)inflows and real gross domestic product (GDP) were used. Econometric analyticalprocedure that involved descriptive statistics, stationarity test, granger causality test,cointegration test, vector error correction model (VECM) as well as impulse responseto shocks was employed to answer research questions and test stated hypotheses. Thefindings show that significant long run relationship exist between investment sourcesand economic growth in Nigeria; specifically, the effects of FDI and DIN aresignificantly positive, while that of FPI is negative. Also, FDI appears to exertsignificant shocks on Nigeria’s economic growth, though the level of shock does notseem to crowd out DIN. On the other DIN shocks does not seem to have significanteffects on foreign investment inflows. Based on the findings, the study concludes thatincreased domestic investment is needed to provide the enabling environment thatminimizes the domestic investment risk profile of the Nigerian business environment.Collaborative (public and organized private sector) intervention efforts by way ofpolicies, programmes and projects need to be made to develop critical infrastructure(roads, power and security) as this will ease the burden of doing business in Nigeria,thereby attracting private investors from both local and foreign sources.
Citation
Benedict Anayochukwu Ozurumba.
2018.
"THE DYNAMIC LINKAGES BETWEEN INVESTMENT AND SUSTAINABLE ECONOMIC GROWTH IN NIGERIA"
The Nigerian Journal of Economic and Social Studies,
60 (1): 1 - 24.
JEL Classification
E22, E62, G11, O47
