IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 9 NO. 6 2023

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Foreign Private Investment and Growth of Manufacturing Sector: Perspective from the Nigerian Economy

Ogaga, Timiepere Cornelius, Benson Emmanuel PhD

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Abstract

This study examines the effects of foreign private investment on manufacturing sector growth in Nigeria from 1990 to 2021. This was aimed at ascertaining how FDI representing Foreign direct investment; FPI representing foreign portfolio investment and gross fixed capital formation (GFKF) has stimulate the manufacturing sector performance in Nigeria. Historical data was collated and estimated employing the ARDL form of Ordinary Least Squares (OLS) technique. The empirical results indicate that foreign private investments were not significant to the growth of the manufacturing sector in Nigeria, while gross fixed capita formation did even though it was only a control variable. It means the technological and managerial advantages of FDI and FPI inflows were not relevant to the manufacturing sector growth. What the manufacturing sector need was the more of FDI to the level that its level becomes as high that of gross fixed capital formation. On the basis of the findings of this study, the following recommendations are made: The economic management authorities should ensure the to promote policies that will attract more and more of FDI, such as sustainable domestic public and private capital investment, stable exchange rate and inflation rate; Policymakers are advised to reform the stock market in order to get more and more of manufacturing firms benefit from foreign portfolio investments.

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References:

Adejumo, A. Victor (2013). Foreign direct investments and manufacturing sector performance in
Nigeria, 1970 –2009. Australian Journal of Business and Management Research, 3(4), 39
– 56.

Akpan, E.S., &Eweke, G.O. (2017). Foreign Direct Investment and Industrial Sector
Performance: Assessing the Long-Run Implication on Economic Growth in
Nigeria. Journal of Mathematical Finance, 07, 391-411.doi: 10.4236/jmf.2017.72021.

Akinmulegun, S. O. and Oluwole, F. O. (2013). An assessment of the Nigerian manufacturing
sector in the era of globalization. American Journal of Social and Management Sciences,
5(1), 27 – 32.

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