n South African Journal of Economic and Management Sciences - The FDI-growth hypothesis : a VAR model for Nigeria
|Article Title||The FDI-growth hypothesis : a VAR model for Nigeria|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Author||Philip Akanni Olomola|
|Publication Date||Mar 2004|
|Pages||170 - 184|
|Keyword(s)||052, F21 and F23|
ISI Social Science
The objective of this study was to examine the causal relationship between foreign direct investment and economic growth in Nigeria using annual data covering the period 1970 to 2002. The study employed the Granger causality procedure to test the direction of causality between foreign direct investment and economic growth for the Nigerian economy. The endogenous production function was derived to accommodate foreign investment and other domestic policies that could influence growth and foreign investment. The study found a one-way causality between from foreign direct investment to economic growth. The implication arising from this study is that Nigeria should adopt policy whereby FDI is attracted to promote economic growth.
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