What Determines Economic Growth in Nigeria?

Abstract

One of the most topical issues that have received extensive attention in economics to date centers on: what determines economic growth? Attempts at answering this question have spawned an avalanche of possible reasons as determinants, ranging from economic, social, political to institutional reasons. This justifies the reason why there is a lack of consensus and a general inconclusiveness concerning economic growth causal factors. Motivated by the concern on the persistent high unemployment, extreme poverty and economic backwardness in Nigeria, this study systematically explores the determinants of economic growth in Nigeria. Results indicate that the main determinants of economic growth in Nigeria are population growth, inflation, foreign direct investment (FDI), interest rates, exports as well as private & public investment. Attention ought to be made to, basically, all the identified factors, however; paying particular attention to the main determinants of economic growth.

Keywords: Economic Growth, Exports, Foreign Direct Investment, Inflation, Interest Rate, Population Growth, Private Investment, Public Investment, Nigeria

JEL Classification: E60, E61, E66, E69, M21, O40, O49