Abstract

AN ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ECONOMIC GROWTH AND EXPORT PERFORMANCE IN NIGERIA (1970 – 2013)

Mustapha Adamu ZUBAIRU, Hadiza Nasir IRO, Maryam Rabiu ZAKARIYYA, Nigeria

Volume: 6 Issue: 4 2016

Abstract:

This study examined the causality between foreign direct investment (FDI) and export performance in Nigeria from 1970-2013. The study employed secondary annual time series data which was obtained from various publications of the Central Bank of Nigeria (CBN) for the period 1970 – 2012. The presence of unit root was tested using the Phillips-Perron (PP 1998) and Kwiatkowski, Phillips, Schmidt, and Shin (KPSS, 1992) tests. Johansen-Juselius and vector error correction (VEC) procedure was performed to trace cointegration relationship between the variables. The study found the presence of a cointegration relationship among the variables. Also the VEC model traced a long-run equilibrium relationship in the variables under study without having any significant short-term causal flows among the series, except for the FDI. However, the study did not trace any significant relationship between GDP, EXR, TOP and exports. The study recommends the authority concern to come up with policies that would make FDI inflow into the real sector favorable for investors which would surely improve the level of level of output for both domestics and exportation in the long run.

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