Technology-Based FDI, Manufacturing Output and Economic Growth: A Comparative Analysis Between Nigeria and Malaysia

International Journal of Civil Engineering and Technology 10(3), 2019, pp. 470-487

18 Pages Posted: 27 Sep 2019

See all articles by Matthew A. Oluwatoyin

Matthew A. Oluwatoyin

Department of Economics & Development Studies, Covenant University, Ota, Nigeria

Agidee E. Dorothy

Department of Economics & Development Studies, Covenant University, Ota, Nigeria

Oluwasogo Adediran

Covenant University

Osabohien Romanus

Department of Economics & Development Studies, Covenant University, Ota, Nigeria.

Folarin Esther

Department of Economics, Anchor University, Ayobo, Ipaja, Lagos, Nigeria

Olawande Tomike

Department of Sociology, Covenant University, Ota, Nigeria

Date Written: September 18, 2019

Abstract

The inflow of technology-based FDI into a country helps to develop the manufacturing sector which brings about an increase in aggregate output which boosts economic growth. It is against this backdrop that this study examined the link between technology-based FDI, manufacturing output and economic growth in Nigeria and Malaysia, using the Vector Autoregression (VAR) model, pointing out the lessons Nigeria can learn from the Malaysian economy. The secondary data used in this study was obtained from the World Bank and the United Nations Conference on Trade and Development (UNCTAD) spanning between 1980 and 2017. The result from this study showed that Malaysia’s FDI inflows are directed towards the manufacturing sector than the Nigerian economy, and this explains why the Malaysian manufacturing sector is more developed than that of Nigeria. Therefore, the study recommended that Nigeria should direct FDI to the manufacturing sector, as this will boost the growth rate of the economy.

Keywords: Foreign Direct Investment, Manufacturing Sector, Economic Growth

JEL Classification: F21, O47, O43

Suggested Citation

A. Oluwatoyin, Matthew and E. Dorothy, Agidee and Adediran, Oluwasogo and Romanus, Osabohien and Esther, Folarin and Tomike, Olawande, Technology-Based FDI, Manufacturing Output and Economic Growth: A Comparative Analysis Between Nigeria and Malaysia (September 18, 2019). International Journal of Civil Engineering and Technology 10(3), 2019, pp. 470-487. Available at SSRN: https://ssrn.com/abstract=3455865

Matthew A. Oluwatoyin (Contact Author)

Department of Economics & Development Studies, Covenant University, Ota, Nigeria ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Agidee E. Dorothy

Department of Economics & Development Studies, Covenant University, Ota, Nigeria ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Oluwasogo Adediran

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Osabohien Romanus

Department of Economics & Development Studies, Covenant University, Ota, Nigeria. ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Folarin Esther

Department of Economics, Anchor University, Ayobo, Ipaja, Lagos, Nigeria ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Olawande Tomike

Department of Sociology, Covenant University, Ota, Nigeria ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

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