Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Impact of Foreign Direct Investment and Agricultural Output on Economic Growth in Nigeria 1990-2024

Zakari Sale PhD

Abstract

The study investigates the impact of foreign direct investment and agricultural output on economic growth in Nigeria from 1990 - 2024. Augmented Dickey Fuller and Phillips Perron unit root test indicated that real gross domestic product is stationery at level while agricultural output, foreign direct investment, exchange rate, and inflation rate are stationery at first difference. The Autoregressive Distributive Lag model (ARDL) shows that agricultural output has a positive and statistically significant effect on the real gross domestic product in Nigeria. Foreign direct investment has a positive and statistically insignificant effect on the real gross domestic product in Nigeria. Exchange rate has a negative and statistically significant effect on the real gross domestic product in Nigeria. Inflation rate has a negative and statistically significant effect on the real gross domestic product in Nigeria. The study recommends that Government should provide enabling business environment by provision of steady supply of electricity and control the insurgent activities in the country and restore confidence of investors to come into Nigeria and invest, when this is done, the volume of foreign direct investment into Nigeria would increase and economic growth could be achieved.

Keywords

Foreign Direct InvestmentAgricultural OutputEconomic GrowthAgricultural

References

Akinboyo, O.P. (2018). Effect of agricultural, manufacturing and services sectors performance in Nigeria, 1980-2017. Journal of Economics and Sustainable Development, 4(20), 35- 41 Akinmulegun, S.O. (2022): Globalization and Agricultural Productivity Paradigm: The Nigerian Perspective. Archives of Business Research, 6(1) 94-104. Akinwale, S.O, Adekunle O. and ,Obagunwa T. (2023); Foreign Direct Investment Inflow and Agricultural Sector Productivity In Nigeria. IOSR Journal of Economics and Finance (IOSR-JEF), e- ISSN: 2321-5933 .Volume 9 Anyanwu, J.C. (1998). An Econometric Investigation of the Determinants of Foreign Direct Investment in Nigeria. Annual Conference. Nigerian Economic Society. Anyawale, A.B. (2007): FDI and Economic Growth: Evidence from Nigeria”, African Economic Research, Consortium Research Paper. Asiedu, E. (2002). On the determinants of foreign direct investment to developing countries: is Africa different?” World Development, 30 (1), pp.107-19. CBN, (2013). Annual Report and Statement of Account, Abuja. Nigeria Cookey, A.E. (2005). Non-oil export in Nigeria: promotional strategies and challenges ahead. Nigerian Journal of Monetary Economics, 5(4&5), 173-177. Dabour, N. M. (2019). The role of FDI in development and growth in OIC members’ countries. Journal of Economic Cooperation, 21(3):27-55 Dunning, J. H. and Sarianna,M. L. (2018). Multinational Enterprises and the Global Economy. Edward Elgar Publishing. Edeh, C.E., Eze, C.G., Ugwuanyi, S.O. (2020), Impact of foreign direct investment on the agricultural sector in Nigeria (1981-2017). African Development Review, 32(4), 551- George, C. Bitros& Epaminondas, E.P. (2001). Is there an inflation-productivity trade-off? Some evidence from the manufacturing sector in Greece, Applied Economics, 33(15):1961-1969 Giwa, B. A., George, E. O., Okodua, H. &Adediran, O. S. (2020) Empirical analysis of the effects of foreign direct investment inflows on Nigerian real economic growth: Implications for sustainable development goal-17, Cogent Social Sciences, 6:1. Investopedia @ 2020, https://www.investopedia.com/terms/f/fdi.asp Jana, S.S., Sahu, T.N., Pandey, K.D. (2019), Foreign direct investment and economic growth in India: Asector-specific analysis. Asia-Pacific Journal of Management Research and Innovation, 15(1-2), 53-67. Karimou, S. M. (2018) Impact of agricultural output on economic growth in West Africa: Case of Benin. 30 international conferences for Agricultural economics. Lim, E. (2017). Determinants of and relationship between foreign direct investment and growth: A summary of recent literature. IMF Working Paper, No.5,International Monetary Fund, Washington, DC Nyiwul, L., Koirala, N.P. (2022), Role of foreign direct investments in agriculture, forestry and fishing in developing countries. Future Business Journal, 8, 50. Ogebe, O. F. Ali, A., & Olagunju, I.O. (2020). Agricultural production: Driver for economic growth and rural poverty reduction in Nigeria. Direct Research Journal of Agriculture and Food Science, 8(10), 373-379. Available at: https://doi.org/10.26765/DRJAFS71312369 Ogundu, G. C. (2023). Structural adjustment and economic revolution in Nigeria. Heinemann Education Books, Ibadan, Nigeria Oguwuike, W. T. (2018) Effect of Agricultural Output on Economic Growth in Nigeria. International Journal of Advanced Studies in Ecology, Development and Sustainability, Vol. 5, No. 1, PP. 39 - 53. Olufemi, A.O. (2019). Sustaining agricultural transformation in Nigeria: Challenges, issues and strategies. International Journal of Innovative, Agriculture & Biology Research, 7(4): 13-22. Opoku, E.E.O., Ibrahim, M., Sare, Y.A. (2019), Foreign direct investment, sectoral effects and economic growth in Africa. International Economic Journal, 33(3), 473-492. Romer, M. (1993). Idea Gaps and Object Gaps in Economic Development. Journal of monetary economics. 32(4) 543-573 Ugwuanyi, G. O., Efanga, U. O. and Ogochukwu, C. O. (2020) Impact of Foreign Direct Investment On Economic Development In Nigeria. European Journal of Accounting, Auditing and Finance Research, Vol.8, No.3, PP.69-85. United Nations Development Program. (2009). Human Development, Development Report, (2009). New York: United Nations Development Programmed. Usman A. (2012). Nigeria attracts N2 Trillion FDI in one year. Financial Standard Vol. 9 No 154, May 26. P1.

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT

Bridging Legal, Financial, and Data Governance in Enterprise AI: Emerging Trends

Author: Funmilayo Ashore-Onisemo, Ebehiremen Faith Iziduh, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa

Macroeconomic Policies and Economic Stability in Nigeria

Author: Abel-Tariah Emmanuel Onate, Okon, Ekanem Nsikhe, Nwenyi Francis Onwe

Determinants of Bank Liquidity in Nigeria

Author: Nelson Johnny Ebifemo-ere Stephen