On The Disaggregated Analysis of Foreign Direct Investment and Economic Growth in Nigeria
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Date
2004
Authors
Loto, M.A.
Ojapinwa, T.V
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Social Sciences Delta State University -Abraka
Abstract
The study examines the disaggregated effects of FDI flows to mmll1g and quarry, manufacturing and processing and business and trade to economic growth in Nigeria using time series data from 1960 to 2011. The study employs Generalized Method of Moments (GMM) estimator while paying particular attention to issues of weighting matrix estimation and coefficient covariance calculation. Specifying HA C-Newey-West weighting matrix in a heteroskedasticity and autocorrelation consistent estimator of the long-run covariance matrix based on an initial estimate, the results show that the effects of foreign direct investment on economic growth in Nigeria is sectoral specific. While FD1flows to trade and business has direct and significant impact with real gross domestic product in Nigeria, FDI flows to manufacturing sector and mining and quarrying have positive relationship but insignificant effects. While the resultfurther shows that the interaction ofFDIflows to trade and business and openness becomes negative and more significant that of FDI to manufacturing and mining and quarrying to openness are insignificant and positive. This insignificant impact of FDI and openness is a clear indication of her small share in the world economy and the composition of her exports occasioned by the exogeneity of her terms of trade.
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Keywords
Disaggregated FDI , Growth , GMM
Citation
Loto, M.A, Ojapinwa, T.V (2004), On The Disaggregated Analysis of Foreign Direct Investment and Economic Growth in Nigeria. Journal of Social and Management Sciences, vol. 9 (3).