Financial Development, Foreign Direct Investment and Economic Growth in Nigeria
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Date
2011
Authors
Saibu, O.M.
Nwosa, P.I.
Agbeluyi, M.A.
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Emerging Trends in Economics and Management Sciences
Abstract
The study examined effects of financial development and foreign direct investment on economic growth in
Nigeria.. The study modified the standard endogenous model to incorporate foreign direct investment and
financial development as the determinant of growth in the long run. Using time series data from 1970 to 2009,
the study tested for the time series properties of the variable and adopted the Autoregressive Distributed Lag
(ARDL) technique to estimate the model. The results showed that financial development and foreign direct
investment had negative effects on economic growth in Nigeria. The result further showed that the effect of
foreign direct investment differed significant when different measures of financial market are used. Specifically
foreign direct investment was only significant when combined with stock market indices. The result also showed
that financial market liquidity but not the size of the financial market that matter for economic growth in
Nigeria
Description
Scholarly articles
Keywords
Financial development , Foreign policy investment , Economic growth , Nigerian economy , Research Subject Categories::SOCIAL SCIENCES::Business and economics
Citation
Saibu M.O, Nwosa P.I. and A.M Agbeluyi (2011) Financial Development, Foreign Direct Investment and Economic growth in Nigeria (1970-2009): Journal of Emerging Trends in Economics and Management Sciences (JETEMS) Vol 1(2): Pp147-155, UK