Modeling Long-Run and Short-Run Dynamics of Foreign Direct Investment on the Manufacturing Sector Growth in Nigeria: The ARDL Bound Testing Approach

Autor:	Nseabasi Imoh Etukafia, Ikenna Elias Asogwa, Ntiedo Bassey Ekpo
Rok vydání:	2017
Předmět:	Error correction model Macroeconomics Manufacturing sector Short run Multinational corporation Central bank Lag Economics Economic liberalization Monetary economics Foreign direct investment
Zdroj:	International Journal of Economics and Finance. 9:128
ISSN:	1916-9728 1916-971X
DOI:	10.5539/ijef.v9n11p128
Popis:	This paper econometrically examines the long run and the short run dynamics of foreign direct investment (FDI) on the manufacturing sector growth in Nigeria between the period 1981 and 2015. Data used in this study were obtained from the Central Bank of Nigeria statistical bulletin published in 2016. The econometric methodology adopted was the bound test and auto regressive distributive lag (ARDL) approach to estimate cointegrating relationship as well as short run and long run dynamics of the FDI and other explanatory variables on output growth in the manufacturing sector. Results of the long run behaviour and short run dynamics (error correction model) indicate that economic liberalization is significant in influencing changes in manufacturing output growth. However, FDI has no significant effect in both the short run and the long run episode. Therefore, it is recommended that policies aimed at encouraging increased participation of private domestic investors in collaboration with multinational corporations in the manufacturing sector be crafted.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::cab40e260b067686cda9e9de95ece81b https://doi.org/10.5539/ijef.v9n11p128 Zobrazit plný text záznamu