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

Lateef Ademola Olatunji, Muhammad Sadiq Shahid


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.

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


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