FDI and Economic Growth in Nigeria: A Co-integration Analysis

Lateef Ademola Olatunji, Muhammad Sadiq Shahid

Abstract


This paper establishes an empirical relationship between foreign direct investment (FDI) and economic growth in Nigeria under the framework of cointegration analysis over the period 1970-2010. The econometric evidence from the Engle Granger cointegration tests suggests that there is no long-run relationship between FDI and economic growth in Nigeria. However, there is a short-run dynamic relationship between FDI and economic growth. And finally the study concluded that, for the achievement of a long-run relationship between FDI and economic growth in Nigeria, there is a need to improve the business environment, with the provision of necessary infrastructure and political stability in the country.


Full Text:

PDF


DOI: https://doi.org/10.5296/ber.v5i1.6647

Refbacks

  • There are currently no refbacks.


Business and Economic Research  ISSN 2162-4860

Copyright © Macrothink Institute

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.