FOREIGN DIRECT INVESTMENT AND MANUFACTURING SECTOR GROWTH IN NIGERIA

ANOWOR, OLUCHUKWU F and Ukweni, Nnaemeka O. and Ibiam, Francis O. and Ezekwem, Ogochukwu S. FOREIGN DIRECT INVESTMENT AND MANUFACTURING SECTOR GROWTH IN NIGERIA. International Journal of Advanced Scientific and Technical Research, 5 (3). pp. 231-254. ISSN 2249-9954

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Abstract

Despite consistent increase in inflow of investment to developing countries, there are still strong indications of low per-capita income, high unemployment rates, high rates of inflation and low and falling growth rates in these countries. These are economic instabilities which foreign direct investment is theoretically assumed to be the panacea. This study employed an econometric method to analyze the contributions of foreign direct investment to the growth of manufacturing sector in Nigeria using annual time series data of the choice variables from 1970 to 2011. Among the findings was that Foreign Direct Investment (FDI), Domestic Investment (DINVT), Exchange Rate (EXR) and the Degree of trade Openness (DOPN) were all related to Manufacturing sector Output Growth (MANFQ) in Nigeria. More so, the Foreign Direct Investment, Degree of trade openness, exchange rate and the lagged error term were statistically significant in explaining variations in Nigeria's Manufacturing Output Growth (MANFQ) and Gross Domestic Product as a proxy for economic growth (GDP) in the models adopted in the study. The policy implication is that the economy should diversify the foreign private capital inflow into the economy, as this will lead to higher growth of the aggregate output. It was recommended that there should be concerted support for technological capabilities of indigenous firms, should create favourable conditions for knowledge exchange, improve technical education base to attract the inflow of FDI and intensively support Research & Development.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 24 Apr 2019 14:52
Last Modified: 24 Apr 2019 14:52
URI: http://eprints.gouni.edu.ng/id/eprint/1253

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