IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 8 NO. 7 2023
DOI: https://doi.org/10.56201/ijefm.v8.no7.2023.pg68.80

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Unit Root Test of Foreign Direct Investment and Economic Growth of Nigeria

Nwaoha, William Chimee, Chukwu, Perpetua Chinyere, Chukwu, Maurice Kalu, Agboriane, Nyore Sophia, Uwakwe, Uchenna Emmanuel

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Abstract

By bridging the gap between domestic savings and domestic investment needs, and bringing the latest technology and management know-how from developed countries, Foreign Direct Investment (FDI) can play a vital role in bringing about rapid economic growth in developing countries like Nigeria. Secondary time series data sourced from National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) Statistical Bulletin were used and Unit Root Test (URT) was adopted for analysis. The results from the findings show that Credit to Private Sector, Net Export and Real Gross Domestic Product (RGDP) are positively and significantly related to FDI in later years. The researchers therefore recommend that government through her Monetary Authorities should initiate policies that will make it easier for private sector operators to access funds for their investments without too much conditionality, encourage production and consequently exports of goods and services.

keywords:

FDI, RGDP, Net Export, Credit to Private Sector, Unit Root Test

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References:

Adams, S. (2009). Foreign Direct Investment, Domestic Investment and Economic Growth in Sub-
Saharan Africa. Journal of Policy Modeling, 31, 939-949.
Agarwal, M. (1984). Dynamics of World Development. Book Review, 40(1).

Akinlo, A. E. (2004). Foreign Direct Investment and Growth in Nigeria. An empirical
Investigation. Journal of Policy Modeling, 26, 627-639

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