RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT INFLOW, SUB-SAHARA AFRICA AND NIGERIA ECONOMIC DEVELOPMENT

Onuorah Anastasia Chi-Chi

doi:10.65453/ajbmr.v1i11.300

Authors

Onuorah Anastasia Chi-Chi Lecturer Department of Accounting, Banking and Finance, Faculty of Management Sciences, Delta State University, Asaba Campus

DOI:

https://doi.org/10.65453/ajbmr.v1i11.300

Keywords:

Johansen test, VAR, Central Bank of Nigeria (CBN), International Monetary Fund (IMF), World Bank Indicator, African Development Bank (ADB), Foreign Direct Investment (FDI), Gross Domestic Product (GDP)

Abstract

The paper aimed at evaluating the relationship between FDI inflow from sub-Sahara Africa (Ghana and Liberia) to the growth of the Nigerian economy. Foreign direct investment provides capital for investment, it enhances job opportunities, technical and management skills, transforming the structure of the economy and the provision of imported technology. Data were derived from the Central Bank of Nigeria, International Monetary Fund, African Development Bank, and World Development Indicators of the World Bank. The period of analysis was 1980 to 2009. Econometrics model was used for estimation. The OLS results reviewed the independent variables have a positive relationship with Nigeria economic growth as a result of the normality significance of Jarque-Bera test. Vector Autoregression model was used to statistically test for a long-run relationship between foreign direct investment and growth of the Nigeria economy. Also construct vector autoregressive model which tested the causality between FDI and economic growth the Granger Causality tests results revealed that NGDP causes LFDI and both LFDI and GFDI granger cause.