Foreign Direct Investment, Export Volume and Economic Growth Nexus under the Structural Adjustment Programme in Nigeria
- Post by: airjournals
- May 31, 2022
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ABSTRACT
This study looked at the interlinkages between foreign direct investment, volume of exports and Nigeria’s economic growth under the Structural Adjustment Programme (SAP) period. However, the study spanned from 1986 to 2021 and employed annual time series secondary data taken from the 2021 statistical bulletin of the Central Bank of Nigeria (CBN). Ex-post facto research design was the approach adopted, and paired granger causality test and Autoregressive Distributed Lag (ARDL) multiple regression were the analytical methods used. The results showed that Foreign Direct Investment (FDI) and export volume (EXPT) have a considerable favorable impact on Nigeria’s economic growth. The results of the causality test showed that export and Foreign Direct Investment (FDI) provide a feedback mechanism that propels the Nigerian economy. Based on the above findings, the study recommended that Nigeria’s federal government should increase its investment in the export sector, encourage the economy’s diversification away from its excessive reliance on crude oil, facilitate the provision of appropriate machinery and infrastructure to support and encourage export activities, which will ultimately result in economic growth in Nigeria through a multiplier effect.
Keywords: Foreign Direct Investment; Export Volume; Economic Growth; Structural Adjustment Programme; Nigeria
BY
Aniekwe, Emmanuel Onuegbunam PhD