Foreign Direct Investment and Nigeria's Economic Growth: A Sectoral Analysis

The Philippine Review of Economics Vol. XLIV No. 2 December 2007 p. 173-196

24 Pages Posted: 22 Jun 2015

See all articles by Sunday Posu

Sunday Posu

Olabisi Onabanjo University (OOU)

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

A.O.B Sangosanya

Olabisi Onabanjo University (OOU)

Lloyd Amaghionyeodiwe

Strayer University - Department of Economics

Date Written: December 6, 2007

Abstract

Aggregate flows of foreign direct investment (FDI) to Nigeria, as in economies of the world, fall into different classified sectors of the economy. Studies on FDI in economic literature have been directed at the macroeconomic effects of FDI on economic growth. As sound as the findings of such studies appear, the growth impacts that FDI flows create on each sector of the economy are, however, masked. Thus this paper, using time-series data for the period 1970-2003 and adopting the ordinary least square technique, investigated the impacts of FDI flows on the outputs of some selected sectors in the Nigerian economy. The parsimonious form of analysis of general-to specific was applied in the analysis of the model. The results shows that FDI flow was significant to sectoral growth of the mining and quarrying, and the transportation and communication sectors, but was not significant to the growth of the agriculture, forestry, and fishery sector.

Keywords: foreign direct investment, sectoral growth, human capital

JEL Classification: F21, E23, O15, O30

Suggested Citation

Posu, Sunday and Soile, Ismail and Sangosanya, A.O.B and Amaghionyeodiwe, Lloyd, Foreign Direct Investment and Nigeria's Economic Growth: A Sectoral Analysis (December 6, 2007). The Philippine Review of Economics Vol. XLIV No. 2 December 2007 p. 173-196. Available at SSRN: https://ssrn.com/abstract=2621006

Sunday Posu

Olabisi Onabanjo University (OOU) ( email )

P.M.B.2002
Permanent Site
Ago-Iwoye, Ogun 234
Nigeria

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

A.O.B Sangosanya

Olabisi Onabanjo University (OOU) ( email )

P.M.B.2002
Permanent Site
Ago-Iwoye, Ogun 234
Nigeria

Lloyd Amaghionyeodiwe

Strayer University - Department of Economics ( email )

United States

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