Revisiting the Trade Openness–FDI Relationship in Nigeria: Asymmetric Evidence from an ARDL/NARDL Framework

Acheampong, A. O., Amponsah, M., & Boateng, E. (2021). Does financial openness matter for trade liberalisation effects on FDI? Evidence from Ghana. Journal of African Business, 22(3), 341–361. Akinlo, A. E. (2004). Foreign direct investment and growth in Nigeria: An empirical investigation. Journal of Policy Modeling, 26(5), 627–639. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: The role of local financial markets. Journal of International Economics, 64(1), 89–112. Agbarakwe, H. U., Anowor, O. F. & Ikue, J. (2018). Foreign resources and economic growth in English speaking ECOWAS countries. Opción (Universidad del Zulia, Venezuela), 34(14), 117–136. Anderson, J. E., & van Wincoop, E. (2003). Gravity with gravitas: A solution to the border puzzle. American Economic Review, 93(1), 170–192. Anowor, O. F., & Agbarakwe, H. U. (2015). Foreign Trade and Nigerian Economy. Developing Country Studies, 5(6), 77–82. Anowor, O. F.; Ichoku, Hyacinth E. & Onodugo, Vincent A. (2020). Nexus between healthcare financing and output per capita: Analysis of countries in ECOWAS sub-region. Cogent Economics & Finance, 8(1): 1832729. Anowor, O. F.; Nwonye, N. G.; Okorie, G. C. & Ojiogu, M. C. (2019). Health Outcomes and Agricultural Output in Nigeria. International Journal of Economics and Financial Research, 5(5), 106-111. Anowor, O. F. & Okorie, George C. (2016). A Reassessment of the Impact of Monetary Policy on Economic Growth: Study of Nigeria. International Journal of Developing and Emerging Economies, 4(1), 82–90. Anowor, O. F., Onodugo, V. A., & Ukpere, W. I. (2025). Drivers of economic prosperity in Sub- Saharan Africa: Empirical considerations of institutions, investment, and macroeconomic policy. Lex Localis-Journal of Local Self-Government, 23(S6), 8645–8667. Anowor, O. F., Ukpere, W. I., & Onodugo, V. A. (2025). Strategic shift from economic survival to long-run environmental sustainability of ECOWAS sub-region: A dynamic panel analysis of carbon emissions and preservation quality. Veredas Do Direito, 22(4), e223666. Anyanwu, J. C. (2012). Why does foreign direct investment go where it goes? New evidence from African countries. Annals of Economics and Finance, 13(2), 425–462. Asiedu, E. (2002). On the determinants of foreign direct investment to developing countries: Is Africa different? World Development, 30(1), 107–119. Asiedu, E. (2006). Foreign direct investment in Africa: The role of natural resources, market size, government policy, institutions and political instability. World Economy, 29(1), 63–77. Azman-Saini, W. N. W., Baharumshah, A. Z., & Law, S. H. (2010). Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling, 27(5), 1079–1089. Babatunde, M. A. (2011). Trade openness, infrastructure, FDI and growth in sub-Saharan African countries. Journal of African Economies, 20(Suppl 3), iii16–iii67. Blonigen, B. A., & Piger, J. (2014). Determinants of foreign direct investment. Canadian Journal of Economics, 47(3), 775–812. Brainard, S. L. (1997). An empirical assessment of the proximity-concentration trade-off between multinational sales and trade. American Economic Review, 87(4), 520–544. Buchanan, B. G., Le, Q. V., & Rishi, M. (2012). Foreign direct investment and institutional quality: Some empirical evidence. International Review of Financial Analysis, 21, 81–89. Central Bank of Nigeria. (2023). CBN statistical bulletin 2022 (Vol. 33). Central Bank of Nigeria. Chinn, M. D., & Ito, H. (2006). What matters for financial development? Capital controls, institutions, and interactions. Journal of Development Economics, 81(1), 163–192. Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366), 427–431. Dixit, A. K., & Pindyck, R. S. (1994). Investment under uncertainty. Princeton University Press. Dunning, J. H. (1977). Trade, location of economic activity and the MNE: A search for an eclectic approach. In B. Ohlin, P. O. Hesselborn, & P. M. Wijkman (Eds.), The international allocation of economic activity (pp. 395–418). Macmillan. Dunning, J. H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1–31. Dunning, J. H., & Lundan, S. M. (2008). Multinational enterprises and the global economy (2nd ed.). Edward Elgar. Hassan, M. K., & Salim, R. (2022). Trade openness, FDI, and economic growth in Egypt: An asymmetric NARDL analysis. Emerging Markets Finance and Trade, 58(6), 1701–1718. Helpman, E., Melitz, M. J., & Yeaple, S. R. (2004). Export versus FDI with heterogeneous firms. American Economic Review, 94(1), 300–316. Ibrahim, M., & Johnson, O. (2017). Oil price shocks, institutions, and FDI inflows in Nigeria. African Development Review, 29(4), 589–602. Kalu, I. E., Agbarakwe, H. U., Anowor, O. F. (2014). 'National Housing Policies and the Realisation of Improved Housing for All in Nigeria: An Alternative Approach', Asian Development Policy Review, 2 (3), 47-60. http://www.aessweb.com/pdf-files/ADPR-2014- 2(3)-47-60.pdf. Kwiatkowski, D., Phillips, P. C. B., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root. Journal of Econometrics, 54(1–3), 159– 178. Melitz, M. J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725. Mourphy, G. M., Kalu, E. U., Ukpere, W. I., & Anowor, O. F. (2025). Exchange Rate Monetary Policy Pass Through and Credit Growth in Sub Sahara Africa. Veredas Do Direito, 22(6), e224010. Nwonye, N. G., Anowor, O. F., Okoh, J. I., Okanya, O. C., Obayi, P. M., Mbah, P. C., Onwumere, J. U. J., Ojeh, A., & Onuselogu, O. C. O. (2023). Government Expenditures, Foreign Aid and Remittances: A Review of Income Inequality in Nigeria, African Journal of Business and Economic Research , 18, (3), 187–209. Nwonye, N. G., Anowor, O. F., Uzomba, P. C., Abu, A., Chikwendu, N. F., Ojiogu, M. C., Edeh, C. C. (2020) Financial Intermediation and Economic Performance in Nigeria: An ARDL Approach, International Journal of Advanced Science and Technology, 29(7),8353-8361. Ochinanwata, C., Uzomba, P. C., Onodugo, V. A., & Anowor, O. F. (2020). Does External Trade Improve Life Expectancy? A Long Run Equilibrium Analysis on English Speaking West African Countries, Solid State Technology, 63(5): 778–796 Okafor, G. (2015). The impact of political instability, socioeconomic conditions, and corruption on FDI inflows in Sub-Saharan Africa. African Development Review, 27(3), 217–229. Onodugo, V. A., Anowor, O. F., & Ofoegbu, G. N. (2018). The effectiveness of monetary policy in tackling inflation in emerging economy. Opción (Universidad del Zulia, Venezuela), 34(14), 314 – 355. http://produccioncientificaluz.org/index.php/opcion/article/view/30262 Onodugo, V. A.; Nwonye, N. G.; Anowor, O. F. & Ofoegbu, G. N. (2019). Attaining Inclusive Growth in a Developing Economy on the Wings of Micro, Small and Medium Scale Enterprises, Amazonia Investiga, 8(24), 239 – 252. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. Phillips, P. C. B., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I(1) processes. Review of Economic Studies, 57(1), 99–125. Phillips, P. C. B., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346. Phiri, A. (2019). Nonlinear adjustment between trade openness and FDI in South Africa. Cogent Economics & Finance, 7(1), Article 1658173. Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In R. C. Sickles & W. C. Horrace (Eds.), Festschrift in honor of Peter Schmidt (pp. 281–314). Springer. Stock, J. H., & Watson, M. W. (1993). A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica, 61(4), 783–820. Suberu, O. J., Ajala, O. A., Akande, M. O., & Olure-Bank, A. (2015). Diversification of the Nigerian economy towards a sustainable growth and economic development. International Journal of Economics, Finance and Management Sciences, 3(2), 107–114. UNCTAD. (2023). World investment report 2023: Investing in sustainable energy for all. United Nations Conference on Trade and Development. Unekwu, A., Kalu, E. U., Ukpere, W. I., & Anowor, O. F. (2025). Monetary Policy, Exchange Rate Inertia, And Inflation Expectations in the West African Monetary Zone: An Empirical Investigation. Veredas Do Direito, 22(6), e224011. World Bank. (2023). World development indicators 2023. The World Bank Group. Zivot, E., & Andrews, D. W. K. (1992). Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal of Business and Economic Statistics, 10(3), 251–270.