Foreign Direct Investment (FDI) and Nigerian Economic Growth

Theophilus Okonkwo Okegbe; Raymond Asika Ezejiofor; Darlington Ifeanyi Ofurum

doi:doi:10.11648/j.ijafrm.20190401.12

| Peer-Reviewed

Foreign Direct Investment (FDI) and Nigerian Economic Growth

Theophilus Okonkwo Okegbe, Raymond Asika Ezejiofor, Darlington Ifeanyi Ofurum

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 1)

Received: 26 December 2018 Accepted: 25 January 2019 Published: 14 March 2019

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 1)
DOI	10.11648/j.ijafrm.20190401.12
Page(s)	15-23
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Foreign Direct Investment, Gross Domestic Product, Oil Sector and Financial Sector

References

[1]	Udenze, O. (2014). The Effect of corruption on foreign direct investment in developing countries. The Park Place Economist, 22 (1).
[2]	Cohen, S. D. (2007). Multinational corporations and foreign direct investment. Oxford University Press.
[3]	Adeoye, A. (2009). Macro economic level corporate governance and fdiin emerging market: Is there Close Relationship? Journal of Economics And International Finance, 1 (12), 030-043.
[4]	Ade O. A., Babatunde, H. & Awoniyi, M. A. (2011). Corruption, foreign direct and economic growth in Nigeria: An empirical investigation. Journal of Research in International Business Management, 1 (9), 278- 292.
[5]	Oba, U. O. & Onuoha, C. B. (2013). Determinant of foreign direct investment and the Nigerian economy. American International Journal of Conter Poray Researchwww.afdb.org/fileadmin/uploads/afdb/Documents/Knowledge/25068317-En-OBAYELUS-PAPER-ON-CORRUPTION-MODIFIED-VERSION.PDF. (11).
[6]	Makki, S. & Somwaru, A. (2004). Impact of foreign direct investment and trade on economic growth. American journal of agricultural economics, Vol. 86, pp. 795-801.
[7]	Wang, M., (2002). Manufacturing FDI and economic growth: Evidence from Asian economies, World Economy, 29, 21-41.
[8]	Liu, X. & Burridge, P. & Sinclair, P. J. N., (2002). Relationships Between EconomicGrowth, Foreign Direct Investment and Trade: Evidence from China” Applied Economics, 34: 1433-1440.
[9]	Ayanwale, A. B. (2007). FDI and economic growth: evidence from Nigeria. African economic research consortium (AERC).
[10]	Carkovic, M & Levine, R. (2002). Does Foreign Direct Investment Accelerate Economic Growth” University of Minnesota Working Paper, Minneapolis.
[11]	Benzuidenhout, H. (2009). A regional perspective in aid and FDI in Southern Africa” North-West University Working Paper No. 147, South Africa.
[12]	Akinlo, A. E. (2004). Foreign direct investment and growth in Nigeria: An empirical investigation”. Journal of Policy Modeling, 26: 627–39.
[13]	Lall S. (2002) FDI and development: research issues in the emerging context. Edited by Bora B. (2002) Foreign Direct Investment Research Issues. Routledge London, New York.
[14]	Adewumi, S. (2006). The impact of FDI on growth in developing countries: An African Experience. Jonkoping International Business School, Sweden.
[15]	United Nation, (2005). Economic development in Africa, rethinking the role of Foreign Direct Investment in United Nation, New York and Geneva. Vol 2.
[16]	Ogunleye, O. (2014). Retrieved December 28, 2016, from jultika.oulu.fi/files/nbnfioulu-201406101751pdf.
[17]	Barry, K. (2016). Introduction to foreign policy, Retrieved January 12, 2017, from usforeignpolicy.about.com/od/ /a/what-is-FDI.htm.
[18]	Ehimare, O. A., (2011). Foreign direct investment and its effect on the Nigerian economy.
[19]	Obiwona, B. (2004). Foreign Direct Investment for Africa in Financing Proper Growth. Nanrobi African Economic Research Consortium, 60-95.
[20]	Shawn, G. (2016). Retrieved January 12, 2017, from Study.com/academy/lesson/what-is-foreign-direct-investment-definition-advantages.html
[21]	Aremu, J. A. (2003). The impact of direct foreign investment in Nigeria. CBN Research Department occasional paper, No II September 2003. Lagos: University of Lagos press.
[22]	Annaek, J.(2007). Foreign capital inflows an development in less developed Countries. New York: McGraw-Hill Book Company.
[23]	HarunaDanja, K. (2012). Foreign direct investment and the Nigerian economy. American journal of economics. 2 (3) 33-40.
[24]	UNCTAD (2009). Investment policy review, Nigeria. United Nations.
[25]	Kokko, A. (2002). Globalization and FDI incentives. annual bank conference on development economics in Europe, Oslo.
[26]	Markussen, J. R. & Vernable. (1999). Foreign direct investment as a catalyst for industrial development. European economic review. 43 (2), 335-56.
[27]	Borensztein, E., De Gregoria, J. & Lee. J. (1998). How does foreign investment affect economic growth?” Journal of international economics, 45 (1): 115–35.
[28]	Blomstrom, M., Lipsey, R. & Zegan, M. (1994). “What explains developing country growth?” NBER Working Paper No. 4132. national Bureau for Economic Research, Cambridge, Massachusetts.
[29]	Oyaromade, R. (2005). Financial Sector Reforms and Financial Savings in Nigeria. Selected papers for the Nigerian Economic Society Conference, 427-448.
[30]	Jyun-Yi, W. & Hsu, C. (2008). Does foreign direct investment promote economic growth? Evidence from a Threshold Regression Analysis. Economics Bulletin, 15 (12).
[31]	Ndambendia, H. & Njoupouognigni, M. (2010). Foreign aid, foreign direct investment and economic growth in Sub-Saharan Africa: Evidence from Pooled Mean Group Estimator” International Journal of Economics and Finance 2 (3), August.
[32]	Osinubi. T. S. & Amaghioneodiwe, L. A. (2010). Foreign private investment and economic growth in Nigeria. Review of Economic and Business Studied, 3 (1), 105-127.
[33]	Akinbobola, T. (2011). Descriptive analysis of savings and growth in Nigeria economy. Journal of Economics and Sustainable Development 2 (7). ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) www.iiste.org.
[34]	Erhieyovwe, E. K, & Jimoh, E. S., (2012). Foreign direct investment granger and Nigerian growth. Journal of Innovative Research in Management and Humanities 3 (2), September, 2012. ISSN: 2141-8217. http://www.grpjournal.org/Journal/Category/JOIRMAH.aspx Printed in Nigeria. All rights reserved. © Global Research Publishing, 2012.
[35]	Umoh O J., Jacob A O. & Chuku A. C (2012). Foreign direct investment and economic growth in Nigeria: An analysis of the endogenous effects’ Current research journal of economic theory 4 (3): 53-66, 2012.
[36]	Koojaroenprasit, S. (2012): The Impact of Foreign Direct Investment on Economic Growth: A Case of South Korea. International Journal of Business and Social Science, 3 (21).
[37]	Eniekezimene, F. A. (2013). The impact of foreign portfolio investment on capital market growth: evidence from Nigeria. Global business and economic research journal, 2 (8), 121-129.
[38]	Melnyk, L, Kubatko, O. & Pysarenko, S. (2014). The impact of foreign direct investment on economic growth: Case of Communism Post-transition Economies. Problems and Perspectives in Management, Vol. 12, Issue 1.
[39]	Sulaiman, U. M. & Mohammed, I. (2014). Stock market development, foreign direct investment and macroeconomic stability: evidence from Nigeria. Research Journal of Finance and Accounting www.iiste.org.ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) 5 (18).
[40]	Agrawal, G. (2015). Foreign direct investment and economic growth in BRICS Economies: A panel Data Analysis. Journal of Economics, Business and Management, 3 (4).
[41]	Muntah, S., Khan, M., Haider, N. & Ahmad, A. (2015). Impact of foreign direct investment on economic growth of Pakistan. American Research Journal of Business and Management, Vol. 1, Issue 1. Moss, T.
[42]	Assiobo, K. M. & Fang Q. (2015). The relationship between foreign direct investment and economic growth in Togo [1991-2009] Proceedings of the 8th International Conference on Innovation & Management·1269.·
[43]	Aminu, U., El-Maude, J. G, & Hamza, A. P., (2015). Foreign direct investment and the growth of the Nigerian Economy. Journal of Economics and Development Studies. March 2015, 3 (1), pp. 193-211.
[44]	Adelakun, O. J. (2015).An investigation of the determinants of savings and investment in Nigeria. International journal of Economics and Business 1 (2).
[45]	Uwubanmwen, A. E. & Ogiemudia, O. A. (2016). Foreign direct investment and economic growth: evidence from Nigeria. International Journal of Business and Social Sciences, 7 (3).
[46]	Emmanuel, I. J. (2016). Effect of foreign direct investment on economic growth in Nigeria. European Business & Management. 2 (2): 40-46 http://www.sciencepublishinggroup.com/j/ebm doi: 10.11648/j.ebm.20160202.14
[47]	Asiedu, E. (2002). On the determinants of foreign direct investment to developing countries: Is Africa Different?” World Development, 30 (1), 107-19.
[48]	Lumbila, N. K. (2005). What makes FDI work? A panel analysis of growth effect of FDI in Africa. African regional working paper series No: 8.
[49]	Roman, M. D. & Padureanu, A. (2012). Models of Foreign Direct Investments Influence on Economic Growth: Evidence from Romania. International Journal of Trade, Economics and Finance, 3 (1).
[50]	Pelinescu, E. & Dulescu, M. (2009). The impact of foreign direct investment on the economic growth and countries’ export potential. Romanian Journal of Economic Forecasting, 4 (1).
[51]	Townsend I. (2003). Does foreign direct investment accelerate economic growth in less developed countries?’’ (online). www.stolaf.edu/people/tjf/townsend thesis.

Cite This Article

Plain Text BibTeX RIS

APA Style

Theophilus Okonkwo Okegbe, Raymond Asika Ezejiofor, Darlington Ifeanyi Ofurum. (2019). Foreign Direct Investment (FDI) and Nigerian Economic Growth. International Journal of Accounting, Finance and Risk Management, 4(1), 15-23. https://doi.org/10.11648/j.ijafrm.20190401.12

Copy | Download

ACS Style

Theophilus Okonkwo Okegbe; Raymond Asika Ezejiofor; Darlington Ifeanyi Ofurum. Foreign Direct Investment (FDI) and Nigerian Economic Growth. Int. J. Account. Finance Risk Manag. 2019, 4(1), 15-23. doi: 10.11648/j.ijafrm.20190401.12

Copy | Download

AMA Style

Theophilus Okonkwo Okegbe, Raymond Asika Ezejiofor, Darlington Ifeanyi Ofurum. Foreign Direct Investment (FDI) and Nigerian Economic Growth. Int J Account Finance Risk Manag. 2019;4(1):15-23. doi: 10.11648/j.ijafrm.20190401.12

Copy | Download

@article{10.11648/j.ijafrm.20190401.12,
  author = {Theophilus Okonkwo Okegbe and Raymond Asika Ezejiofor and Darlington Ifeanyi Ofurum},
  title = {Foreign Direct Investment (FDI) and Nigerian Economic Growth},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {1},
  pages = {15-23},
  doi = {10.11648/j.ijafrm.20190401.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190401.12},
  abstract = {This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Foreign Direct Investment (FDI) and Nigerian Economic Growth
AU  - Theophilus Okonkwo Okegbe
AU  - Raymond Asika Ezejiofor
AU  - Darlington Ifeanyi Ofurum
Y1  - 2019/03/14
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190401.12
DO  - 10.11648/j.ijafrm.20190401.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 15
EP  - 23
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190401.12
AB  - This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.
VL  - 4
IS  - 1
ER  -

Copy | Download

Author Information

Theophilus Okonkwo Okegbe

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Raymond Asika Ezejiofor

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Darlington Ifeanyi Ofurum

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Theophilus Okonkwo Okegbe, Raymond Asika Ezejiofor, Darlington Ifeanyi Ofurum. (2019). Foreign Direct Investment (FDI) and Nigerian Economic Growth. International Journal of Accounting, Finance and Risk Management, 4(1), 15-23. https://doi.org/10.11648/j.ijafrm.20190401.12

Copy | Download

ACS Style

Theophilus Okonkwo Okegbe; Raymond Asika Ezejiofor; Darlington Ifeanyi Ofurum. Foreign Direct Investment (FDI) and Nigerian Economic Growth. Int. J. Account. Finance Risk Manag. 2019, 4(1), 15-23. doi: 10.11648/j.ijafrm.20190401.12

Copy | Download

AMA Style

Theophilus Okonkwo Okegbe, Raymond Asika Ezejiofor, Darlington Ifeanyi Ofurum. Foreign Direct Investment (FDI) and Nigerian Economic Growth. Int J Account Finance Risk Manag. 2019;4(1):15-23. doi: 10.11648/j.ijafrm.20190401.12

Copy | Download

@article{10.11648/j.ijafrm.20190401.12,
  author = {Theophilus Okonkwo Okegbe and Raymond Asika Ezejiofor and Darlington Ifeanyi Ofurum},
  title = {Foreign Direct Investment (FDI) and Nigerian Economic Growth},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {1},
  pages = {15-23},
  doi = {10.11648/j.ijafrm.20190401.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190401.12},
  abstract = {This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Foreign Direct Investment (FDI) and Nigerian Economic Growth
AU  - Theophilus Okonkwo Okegbe
AU  - Raymond Asika Ezejiofor
AU  - Darlington Ifeanyi Ofurum
Y1  - 2019/03/14
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190401.12
DO  - 10.11648/j.ijafrm.20190401.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 15
EP  - 23
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190401.12
AB  - This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.
VL  - 4
IS  - 1
ER  -

Copy | Download