International Capital flows and Manufacturing Output: Evidence from Nigeria

EWUBARE DENNIS; Rosemary Chioma

doi:10.56201/ijssmr.v10.no11.2024.pg.197.207

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International Capital flows and Manufacturing Output: Evidence from Nigeria

EWUBARE DENNIS, Rosemary Chioma

Abstract

This study examined the effect of international capital flows on Nigeria’s manufacturing output from the period of 1986 to 2022. As part of the methodology, the study used the Autoregressive Distributed Lag (ARDL) approach and an exp-post research design in the investigation. The annual times series data for exchange rate, foreign direct investment inflows, official development assistance received, external debt, and manufacturing output were obtained from the World Development Indicators (WDI) and Central Bank of Nigeria Statistical Bulletin (various issues). The long run and short run results of the study disclosed that, at 5 percent level exchange rate does not influence growth in manufacturing output in Nigeria. In another light, foreign direct investment has a significant negative impact on manufacturing output in the short run. In contrast, official development assistance received and external debt both established significant positive effect on manufacturing output in the short run. Further, the long run result showed that both the foreign direct investment inflows, official development assistance received do not influence growth in manufacturing output. However, the study found evidence of significant positive impact of external debt on the performance of Nigeria’s manufacturing output in the long run. Following these developments, the study recommended that Nigeria should seek more official development assistance and external debt as they positively influence growth in manufacturing output.

Keywords

NigerianExternal SectorManufacturing output

References

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International Capital flows and Manufacturing Output: Evidence from Nigeria

Abstract

Keywords

References

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