EFFECT OF FOREIGN PRIVATE CAPITAL ON ECONOMIC GROWTH IN NIGERIA (1986-2017)
- Nuhu Musa
- ( paper pages. 1 - 19 )
Abstract
Foreign capital has been acknowledged as one of the driving forcesof economic growth. The study examined the effects of foreign privatecapital on economic growth in Nigeria, using time series data for theperiod 1986-2017. To achieve the objective, the study employedAutoregressive Distributed Lag (ARDL) for the analysis. The studyused real gross domestic product as proxy for economic growth, beingthe dependent variable, while the independent variables in the modelincluded foreign direct investment, portfolio investment, internationalremittance, gross fixed capital formation, labour force, governmentexpenditure, and trade openness. Stationarity test was carried outusing the Augmented Dickey-Fuller (ADF) unit root test. The result ofthe stationarity test indicate that the variables have mixed order ofintegration. The ARDL bound test indicated the existence of a long-run relationship or cointegration among the variables. Furthermore,the result of the AR root graph indicates that the variables are stable.The empirical study indicated that foreign direct investment,remittances, portfolio investment, and trade openness exert positivesignificant effect on economic growth in Nigeria. However,government expenditure was negative but statistically insignificant.Based on this finding, the study recommended that government shouldcreate an enabling environment that will spur the inflow of foreignprivate capital.
Citation
Nuhu Musa.
2019.
"EFFECT OF FOREIGN PRIVATE CAPITAL ON ECONOMIC GROWTH IN NIGERIA (1986-2017)"
The Nigerian Journal of Economic and Social Studies,
61 (2): 1 - 19.
JEL Classification
F3, E22, G11, O16
