FOREIGN CAPITAL INFLOWS AND MANUFACTURING SECTOR GROWTH IN NIGERIA

The study examined the impact of foreign capital inflow on manufacturing sector growth in Nigeria using time series data from 1986 to 2019. The study specifically sought to examine the causal relationship between foreign capital inflows and the growth of the manufacturing sector in Nigeria in the long run The study employed the Autoregressive Distributed Lag (ARDL) estimation technique to account for the impact of foreign capital inflows on the manufacturing sector growth in Nigeria. The study utilized the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP) as proxy for manufacturing sector growth. Manufacturing sector growth was the dependent variable while foreign direct investment (FDI), foreign portfolio investment (FPI) and foreign Aid (FOA) were the independent variables, and were regarded as proxies for foreign

capital inflows. The study results revealed that foreign capital inflows through the FDI had a significant positive impact on contributions of the manufacturing sector to gross domestic product (GDP). The study also revealed that foreign capital inflows through the FPI had a significant positive impact on contributions of the manufacturing sector to the GDP. The study further revealed that foreign capital inflows through the FOA had a significant positive impact on contributions of the manufacturing sector to the GDP. Based on these findings, the study has recommended that the Nigerian government should promote foreign capital inflows through the FDI in order to achieve the desired level of manufacturing sector growth in the country's economy in the long run. The government should also encourage foreign capital inflows through the FPI in order to attain the desired level of manufacturing sector growth in the Nigerian economy. Finally, the government should also support foreign capital inflows

INTRODUCTION
It has often been recognized worldwide that foreign capital inflows will boost growth in the manufacturing sector in emerging nations and make it necessary for host nations to attain investment intensities that are higher than their own intensities of domestic savings (Adigwe et al., 2015). Furthermore, foreign capital inflows has long been wellregarded as one of the key sources of finance, which will support the transfer of new technologies and innovations from advanced economies to developing economies, thus assisting the latter to fast-track the pace of their economic growth and development. However, there have also been some cautious reminders that foreign capital inflows and the purported development expansion effects might vary from one nation to another, and foreign capital inflows could inadequately affect the increase in manufacturing sector growth (Acha & Essien, 2018).
The central profit of capital inflows and other foreign financial resources, which manifest themselves through their externalities are not only the taking up of new technologies and innovations, but also their capability with internal sources of finance that affect some important macroeconomic variables. They are variables such as employment generation, national investment, the attainment of proficiency by the labour force and the business environment, and the efficiency of exports in emerging economies (Anaza, 2016). Notably, there were many types of foreign capital inflows that could improve economic growth in the manufacturing sector. Some of them included the following: foreign direct investment (FDI), foreign portfolio investment (FPI) and foreign aid (FOA).
In developing countries such as Nigeria, following the evolution of financial liberalization which took place in the 1980s, developing countries implemented a series of financial liberalization programmes to achieve growth and development in the financial sector. Consequently, opportunities for profitable investment increased in the 1990s as foreign capital inflows of developing countries improved from $6.2 billion in 1987 to $46.9 billion in 1993 (United Nation Development Programme [UNDP], 2013). Similarly, foreign capital inflows such as the purchase of shares, stocks, and depository receipts by foreign investors registered a moderate increase from 1993 through to 1999, but decreased in 2000. This decrease was triggered off by the terrorist attack on the World Trade Centre in the United States of America (United Nations Economic Commission for Africa, 2013). Haven taken off in 2002, it climbed to reach a peak of about $17 billion in 2006, representing 2.21 percent of the gross domestic product (GDP), of which 89 percent went to South Africa. It however, dropped sharply in 2007, following the global financial crisis.
Foreign capital inflows is believed to be able to drive the Nigerian economy towards achieving her desired level of economic growth. However, up to the mid-1980s, the Nigerian economy has never ever recorded any figure on foreign capital inflows, or investment inflows in her balance of payments account. The zero return on the inflow column of the account was attributed to the absence of foreign private investors in Nigeria's economy. This was basically because of the noninternationalization of the country's money and capital markets, as well as the non-disclosure of information on the portfolio investments in foreign capital and money markets. It must be noted that prior to 1995, ownership limits were obligatory on foreign participation in the Nigerian economy (World Bank, 2019). In the same vein, Nigerians could not freely invest in other countries. In order to tackle this issue, the government of Nigeria embarked on policies such as indigenization through the Nigeria Enterprise Promotion Degree (NEPD) in 1972. The NEPD was implemented with a view to regulating foreign investments, setting a maximum of 40 percent foreign participation allowed and the internationalization of the capital and money market to encourage continual foreign interest in the country, and in turn, to encourage manufacturing sector growth in the long run. Despite the government's indigenization policy and the internationalization of the capital and money market to support foreign capital inflows, the foreign capital inflows fell sharply in 2015 and 2016 by about 31.9 percent ( N470.83 billion) and 45.5 percent (N256.52 billion), respectively. The policies of the Nigerian government also contributed to the fall in the growth of the manufacturing sector for two consecutive quarters, and this technically resulted in the Nigerian economy getting mired in an economic recession (Nigeria Stock Exchange, 2016). The growth of the manufacturing sector has long been widely considered as a major contributor to the growth of the GDP. This is as shown in Table 1 A review of the literature showed that most of the previous studies such as those by Ejuvbekpokpo and Hassan (2015), Adigwe et al. (2015) and Anaza (2016), had emphasized much on the relationship between the FDI and economic growth in Nigeria. There has been little attention paid to foreign capital inflows and manufacturing sector growth in Nigeria. Hence, the need to fill this gap has motivated this study to examine the impact of foreign capital inflows on the growth of the manufacturing sector in Nigeria.
In addition, the available previous literature reviewed in this area of research interest, have identified studies such as that by Ezeanyeji and Ifeako (2019) who showed that there was a bidirectional relationship between foreign capital inflows and economic growth in Nigeria in the long run. Other studies like that of Baghebo and Apere (2014) however, found that there was no long run relationship, but instead the presence of a unidirectional relationship between foreign capital inflows and economic growth in Nigeria.
Also, studies such as those by Ibrahim and Akinbola (2017) and Acha and Essien (2018) found the existence of a unidirectional relationship between foreign capital inflows and economic growth in Nigeria.
On the other hand, Bada (2016) and Oladejo (2016) have found the existence of a bidirectional relationship between foreign capital inflows and economic growth in Nigeria. Therefore, this study was aimed at examining whether there was a causal relationship between foreign capital inflows and manufacturing sector growth in Nigeria in the long run.

LITERATURE REVIEW
The extant studies reviewed in this section had focused on the impact of foreign capital inflows on economic growth in Nigeria as a whole. As a matter of fact, there had been a dearth of literature on foreign capital inflows and manufacturing sector growth in Nigeria. However, some of the related studies such as that by Ezeanyeji and Ifeako (2019) had examined the impact of foreign capital inflows on economic growth in Nigeria using time series data for the period from 1986 to 2017. The Error Correction Model (ECM), the Johansen cointegration test, and the Granger causality test were used as the technique of estimations in the Ezeanyeji and Ifeako (2019) study.
The result of their analysis showed that foreign capital inflows (FCI) had a positive significant impact on economic growth in Nigeria. The finding further revealed that there was in the long run, a bidirectional causal relationship between foreign capital inflows and economic growth in Nigeria. Similarly, Acha and Essien (2018) had examined the effect of foreign capital inflows on economic growth in Nigeria using time series data obtained from 2005 to 2014. The Ordinary Least Squares (OLS) multiple regression and the Granger causality test were used to analyze the data. The result indicated that foreign capital inflows (FPI) and market capitalization had a positive effect on the real gross domestic product (RGDP), while the exchange rate had an inverse relationship with the RGDP. The findings further revealed that there was a unidirectional causal relationship between foreign capital inflows and economic growth in Nigeria.
In addition, there was the study by Ibrahim and Akinbobola (2017) which investigated the relationship between foreign capital inflows and economic growth in Nigeria within the timeframe from 1986 to 2013. The OLS technique and the Granger causality test were employed for the data analysis. The result showed that foreign capital inflows was positively and significantly related to economic growth in Nigeria.
The Granger causality test revealed the existence of a unidirectional relationship between foreign capital inflows and economic growth in Nigeria. Similarly, in another study carried out by Okafor et al. (2016), the relationship between foreign capital inflows and economic growth in Nigeria from 1981 to 2014 was the focus of the investigation. The Augmented Dickey-Fuller (ADF) test, the Cointegration test and the Toda Yamamoto test of causality were employed for the analysis. The results revealed that there was a bidirectional causality relationship between the GDP and the FDI, as well as between the FDI and the GDP. It also indicated that there was a unidirectional causal relationship between foreign private investment and the GDP with causation running from foreign private investment to GDP.
Moreover, Bada (2016) examined the effect of foreign capital inflows (FCI) on Nigerian economic growth using time series data from 1991 to 2014. The OLS technique and the Granger causality test were used for the analysis. The major finding was that there was an increase in the FCI for a given period, as well as a decline caused by global recession.
The result based on the Granger causality test showed a bidirectional relationship between foreign capital inflows and economic growth in Nigeria. In a similar study by Oladejo (2016), the impact of the FCI on Nigerian economic growth from 1986 to 2015 was the focus of investigation. The OLS technique and the Granger causality test were employed for the data analysis. The study found, among others, that there was an increase in the foreign capital inflows for a given period, followed by a decline. This was attributed to the massive capital outflow and divestment by investors, events which were triggered by the global recession during the period under investigation. The study further pointed out that there was a bidirectional relationship between foreign capital inflows and economic growth in Nigeria.
Anaza (2016) investigated the determinants that could have an impact on the FDI and in turn, an impact on the Nigerian economy from 1986 to 2010. The quantile regression analysis was used to analyze the data. It was found that the FDI inflows were mainly in the mining and manufacturing sectors, as was highlighted by the composition and trend analyses; others sectors such as agriculture, building and constructions had yet to benefit f significantly from the FDI inflows. The study used time series data from 1986-2013. In its analysis, the study applied the OLS regression technique, and found that institutional qualities managed to sway the FDI inflows in the long run. The study further revealed that institutional quality could be regarded as an essential factor in determining FDI inflows in Nigeria.
There was another study using time series data sourced from the CBN Statistical Bulletin from 2008 to 2013, and it was carried out by Adigwe et al. (2015). The researchers also wanted to determine the relationship between the FDI and economic growth in Nigeria. The Pearson Correlation was used to test the research hypothesis. The study discovered that there was a significant relationship between the FDI exchange rate and economic growth in Nigeria.
Baghebo and Apere (2014) also wanted to ascertain, by using time series data from 1986-2011, the impact of foreign capital inflows on economic growth in Nigeria. The study employed the ARDL estimation technique and the Granger causality test. The study revealed that foreign capital inflows, market capitalization, and trade openness had a positive relationship with the real gross domestic product in Nigeria in the long run. The results however, claimed that there was no relationship between foreign capital inflows and economic growth in Nigeria in the long run. In addition, it found that the Granger causality test showed the existence of a unidirectional relationship between foreign capital inflows and economic growth in Nigeria.
Similarly, Onu (2014)  In the study by Tokunbon and Lloyd (2014), the researchers who had used data from 1990-2010, dissected the meaning of the impact of external capital inflow on the financial development of Nigeria. The investigation had found that unfamiliar capital inflow, homegrown venture development and net fare development significantly affected monetary development in Nigeria. The investigation reasoned that an expansion in external capital inflows would prompt an increment in monetary development in Nigeria. However, Rachdi and Saidi (2014) who had analyzed the effect of external capital inflows on the financial development of 100 developing and developed nations over the period of 1990 -2010, discovered blended outcomes. It was also pointed out that the portfolio speculation coefficient was found to be negative and genuinely not critical in non-industrial nations, while the converse was the situation for selected nations.
In addition, Osinubi (2014) Omankhanlen (2014) analyzed the impact of foreign direct speculation on the Nigerian economy over the period of 1980-2011. The research examined exactly if the accompanying development deciding factors in the economy-equilibrium on current record (equilibrium of installment), expansion and conversion degree have any impact on foreign direct speculation just as if foreign direct speculation have any impact on total national output. The study utilized the OLS to study the connections between the previously mentioned factors and FDI. The investigation uncovered that foreign direct speculations essentially affect current record balance in equilibrium of installment while expansion altogether affects foreign direct speculation inflows.
In studying the relationship between the FDI and economic growth in Nigeria, Ugwuegbe et al. (2013) used time series data from 1981 to 2009. The data were analyzed using the OLS technique and the Granger causality test. The findings showed that the FDI was positively related to economic growth in Nigeria. The Granger causality result showed the existence of a bidirectional relationship between the FDI and economic growth in Nigeria. Ekeocha et al. (2012) was also another study aimed at determining the determinants of foreign capital inflows in Nigeria in the long run. The study used the OLS method on time series data from 1981 to 2010. The variables considered were market capitalization, real exchange rate, real interest rate, real GDP and trade openness.

METHODOLOGY Theoretical Framework
A study of this nature has always been associated with the financial capital streams theory propounded by Michael and Makoto (2006). This was based on the widely held belief that the theory has been able to explain that the presence of the FDI, the FPI and the foreign structure of net external resources were a fundamental part in facilitating capital streams in nations trying to achieve their macroeconomic objectives of growth and development.
The study is accordingly secured on this hypothesis since when a business firm takes coordinating belonging in a business entity in another country, the financial investor makes external business tasks or procures external business resources, including setting up possession or controlling revenue towards boosting growth across the leading sector where investment is made and rising growth in the host country.
The capital inflow of external financial investors permits stimulating foundation, increasing profitability and setting out business open doors for the teeming populace and manufacturing sector in the investment environment. The theory is also applied to this study because a foreign capital inflow through portfolio investment offers a few advantages remembering a wellspring of loanable assets for objective nations and portfolio broadening by foreign financial investors. The study utilizes this theory because foreign capital inflow through foreign portfolio is a drive for financial development and an expansion in the profitable limit of the economy because of the growing contribution of manufacturing sector contribution to GDP. Finally, this study is anchored on financial capital streams theory because foreign aid as one of the foreign capital inflows saves lives especially during catastrophes and calamities, as because of cataclysmic events, restore jobs, give medications, helps agribusiness and supports improvement to boost growth and development.

Model
The general model of analysis is as shown in Equation (1). The variables of interest included the following: the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP), being the dependent variable, as a proxy for the manufacturing sector growth, while the FDI, the FPI and the FOA were the independent variables and proxies for foreign capital inflows. (1) where MGDP = Contribution of manufacturing sector to GDP (USD million) FDI = Foreign direct investment (USD million) FPI = Foreign portfolio investment (USD million) FAO = Foreign aid (USD million) ɛ = Error term β i = Coefficient (i = 1, 2, 3)

Data
The study utilized time series data, which span the period from 1986 to 2019. The data was sourced from the World Bank Popular Indicator (2019) and the Central Bank of Nigeria Statistical Bulletin (2019).
The data was collected using library research.

Method of Analysis
The study employed the Autoregressive Distributive Lag (ARDL) estimation technique. The ARDL is a least squares regression approach involving the lag of both the endogenous variable and the exogenous variables (Gujarati, 2004). The ARDL model is normally denoted using ARDL (p , q 1 , q 2 , q 3 , … , q k ) where; p denotes the number of lags of the endogenous variable and q i ( i = 1,2, … , k) is the number of lags of the exogenous variable. The Granger causality test was used to determine the nature of the causal relationship between foreign capital inflows and manufacturing sector growth in Nigeria.
Having adopted the ARDL model, the following steps have been followed in the estimation process. First, make sure that none of the variables are I(2), as such data will invalidate the methodology. Second, formulate an "unrestricted" ECM. This will be a particular type of the ARDL model, as it will determine the appropriate lag structure for the model in step 1. Third, make sure that the errors of this model are serially independent and "dynamically stable". It is at this step that diagnostic checking is conducted. Fourth, perform a "Bounds Test" to see if there is proof of a long-run relationship between the variables. Fifth, if the outcome at step 4 is positive, estimate a long run "levels model", as well as a separate "restricted" ECM. Sixth, use the results estimated by the model, as estimated in step 5 to measure the short-run dynamic effects, and the long-run equilibrating relationship between the variables. The ARDL shown in Equation (2) has been developed based on Equation (1). (2) where α 0 and μ t refer to the autonomous component and white noise, respectively. The expression with the signs of summation in the equation is error correction. The parameter coefficients, δ, β, θ and γ denote the short run effects while lambda (λ) is the corresponding relationship in the long run. Table 2 shows the 33 observations for all the variables. The FDI variable has the maximum mean or average value, while the FOA has the least mean or average value. Considering the standard deviation for all the variables of interest, the FOA has the highest standard deviation value, while the MGDP has the least standard deviation value. Based on the descriptive statistics, all the variables were positively skewed.

Descriptive Statistics
The Jarque-Bera result showed that individually, all the variables were not normally distributed. The result of their probability also confirmed the absence of normal distribution among individual variables. Hence, there was a need to conduct unit root test for stationarity.

Correlation Analysis
As shown in Table 3, the correlation coefficients as estimated for the variables indicated a weak positive relationship between the dependent variable MGDP and the independent variables because the coefficient correlation was less than 0.5.

Unit Root Test
To ascertain the order of integration of the variables, the unit root test was carried out to account for the presence of unit roots (that is whether the variables were stationary or not) using the Augmented Dickey Fuller (ADF) test. The unit root test results in Table 4 reveal that all the variables were not stationary at level, because their ADF statistical values were less than the critical values at the five percent level of significance. The variables were all stationary at first difference as their ADF statistical values were greater than their critical values at the five percent level of significance. All the variables had the same order of integration, i.e., since they were all differenced only once before they became stationary. Note: *** denotes statistically significant at 1 percent level of significance. Table 5 shows the result of the cointegration test. The calculated F-statistic (3.85) was greater than all the lower bound and upper bound critical values at all levels of significance. Hence, the null hypothesis of no long run relationship among the variables of the selected ARDL (2, 1, 2, 1) had to be rejected. In addition, the variables employed in this study were found to be cointegrated.  Table 6 shows the lag length selection results obtained through the estimation of the lag length selection conducted and then the estimation of the ARDL model accordingly. From the lag selection results in Table 6, lag two was selected by the entire selection criterion.

ARDL Optimal Lag Model
This aspect deals with the choice of the optimum ARDL model for the determination of the analysis. Following Pesaran et al. (2001), the ARDL optimal model level order ARDL for the impact of foreign capital inflows on manufacturing sector growth in Nigeria was model ARDL (2,1,2,1). The result is as shown in Table 7. From the ARDL optimal model and the level order ARDL model, the association between the estimated variable could easily be ascertained. Note: * and *** denote statistically significant at 10 percent and 1 percent level of significance, respectively.

Estimation Result
The estimated ARDL results in Table 8 were used to examine the impact of foreign capital inflows on manufacturing sector growth in Nigeria, and to establish if there was a relationship between foreign capital inflows and manufacturing sector growth in Nigeria in the long run. The coefficients of the LNFDI, the LNFPI and the LNFOA, except the LNMGDP were statistically significant at the five percent level of significance. The null hypothesis of no relationship between these variables and the MGDP was therefore rejected. There was a significant positive relationship between the LNMGDP, the LNFDI, the LNFPI and the LNFAO. In sum, a one percent increase in the LNFDI, the LNFPI and the LNFOA would lead to a 57 percent, 71 percent and 30 percent increase in the LNMGDP respectively. Note. ** and *** denote statistically significant at the 5 percent and 1 percent level of significance, respectively.
The result of the short run model in Table 8 shows that the independent variables namely, the FDI, the FPI and the FAO can explain about 72 percent of the total variations in the contribution of the manufacturing sector MGDP as a proxy for the manufacturing sector growth, while the remaining 28 percent which was unexplained was captured by the error term. The prob (F-statistic) of 0.000042 shows that the entire model was found to be robust.
Furthermore, Table 8 shows the short run estimation result. The short run model accounts for the speed of adjustment to the long run equilibrium of the variables employed. The speed of adjustment of the model to the long run equilibrium was measured by the coefficient of the first lag of the ECT(-1). The lag ECT has the right sign and it was statistically significant. The result of the ECT(-1) shows that 94 percent of the deviation of the variables in the short run would be restored in the long run within one year.
The results of the study revealed that foreign capital inflows through the FDI had a significant positive impact on the contribution of the manufacturing sector to the GDP. This has implied that the increase in foreign capital inflows through the FDI had led to the increase in manufacturing sector growth in Nigeria. This finding is in line with that of Adekunle et al. (2020), who pointed out that foreign direct investment and portfolio investment had had a significant positive relationship with manufacturing performance in Nigeria. Their study showed that foreign capital inflows through the FPI had significant positive impact on the contribution of the manufacturing sector to the GDP. This implied that the increase in foreign capital inflows through the FPI had led to the increase in manufacturing sector growth in Nigeria. This finding is in line with that found in Ndubuisi (2018), who revealed that the foreign portfolio investment had had a positive impact on manufacturing performance in Nigeria. This finding was also supported in Adekunle et al. (2020), who showed that foreign portfolio investment was found to have a positive impact on manufacturing performance in Nigeria.
The results also provided further support to the view that foreign capital inflows through the FOA had a significant positive impact on the contribution of the manufacturing sector to the GDP. This implied that an increase in foreign capital inflows through the FOA had led to an increase in manufacturing sector growth in Nigeria. This finding was also in line with that in Ndubuisi (2018), who revealed that foreign aid had had a positive impact on manufacturing performance in Nigeria.
Finally, the results showed that there was a long run relationship between foreign capital inflows and manufacturing sector growth in Nigeria. This finding was also supported by the study of Mounde (2017), who revealed that there was a long run relationship between foreign direct investment and the output growth of the manufacturing sector. The result also demonstrated the existence of a unidirectional causal relationship between foreign capital inflows and manufacturing sector growth in Nigeria.
This finding was further corroborated in the study by Adekunle et al. (2020), who revealed that there was a unidirectional causality between foreign capital inflows and the FDI, and portfolio to manufacturing performance in Nigeria. This finding however, was in contrast to that of Mounde (2017), who revealed that there was a bidirectional causal relationship between the FDI, as one of the foreign capital inflow, and manufacturing output in Nigeria

Diagnostic Checking
Diagnostic checking was carried out to check on the following: the specification error, the serial correlation problem and the heteroskedasticity problem. Table 9 shows the result of the serial correlation test. From the results displayed in Table 9, since the probability value of the Ramsey RESET test was greater than 0.05, it is clear that the null hypothesis can be accepted, and the alternative hypothesis should be rejected. It was also concluded that there was no specification error in the short run and long run models.  Table 10 shows the result of the serial correlation test. It is clear from Table 10 that, since the probability value of the serial correlation LM test was 0.062, which was greater than 0.05, the null hypothesis should be rejected. There was also no serial correlation in the short run and long run models.  Table 11 shows the result of the heteroscedasticity test. It is clear from Table 11 that, since the probability value of the heteroskedasticity test was 0.487, which was greater than 0.05, the null hypothesis should be accepted and the alternative hypothesis rejected. It could also be concluded that there was no heteroskedasticity in the short run and long run models.  Figure 1, which is the essential condition for the stability of a model, shows that the blue lines lay inside the dotted red line and this implied that the model was dynamically stable at the five percent level of significance.

Stability Test: CUSUM Test for the Short and Long Run Models
The results of the CUSUM of squares test in Figure 2, which was the sufficient condition for the stability of a model, shows that the blue lines lay inside the dotted red line and this implied that the model was dynamically stable at the 5 percent level of significance.

Figure 2
Stability Test: CUSUM of Squares test for the Short and Long Run Models   Finally, the result suggests that the direction of causality was from the FOA to the MGDP since the probability value of the F-statistic (0.035) was less than 0.05. In contrast, there was no reverse causation from the MGDP to the FOA, because the probability value of the F-statistic (0.862) was statistically insignificant. In sum, there was a unidirectional relationship between the FOA and the MGDP. Furthermore, there was a unidirectional relationship between foreign aid and manufacturing sector growth in Nigeria. Based on the findings, the study concluded that there was a causal relationship between foreign capital inflows and manufacturing sector growth in Nigeria.

Table 12
Granger Causality Test Result Note. *** and *** denote statistically significant at the 5 percent and 1 percent level of significance, respectively

CONCLUSION AND RECOMMENDATIONS
The study has examined the relationship between foreign capital inflows and the manufacturing sector growth in Nigeria. It employed the ARDL approach in testing the impact of foreign capital inflows on the growth of the manufacturing sector in Nigeria. The study utilized the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP) as a proxy for the dependent variable, which was the manufacturing sector growth, while the FDI, FPI and FOA were the independent variables and proxies for foreign capital inflows. The ARDL was used as the estimation technique.
The findings of the present study have led to three major conclusions regarding the causal relationship between foreign capital inflows and the growth of the manufacturing sector in Nigeria in the long run, First, it was the conclusion that foreign capital inflows through the FDI had a significant positive impact on the contribution of the manufacturing sector to the GDP. This implied that an increase in the foreign capital inflows through the FDI would lead to an increase in the manufacturing sector growth in Nigeria. Second, it was the conclusion that foreign capital inflows through the FPI had a significant positive impact on the contribution of the manufacturing sector to the GDP. This implied that an increase in the foreign capital inflows through the FPI would lead to an increase in the manufacturing sector growth in Nigeria. Third, it was the conclusion that foreign capital inflows through the FOA had a significant positive impact on the contribution of the manufacturing sector to the GDP. This implied that an increase in foreign capital inflows through the FOA would lead to an increase in the manufacturing sector growth in Nigeria.
In sum, based on the test of the hypotheses of the present study, the overall conclusion was that foreign capital inflows had had a significant impact on the manufacturing sector growth in Nigeria.
There was a long run relationship between foreign capital inflow and manufacturing sector growth in Nigeria. There was also a causal relationship between foreign capital inflows and manufacturing sector growth in Nigeria. On the basis of these findings, it is recommended that the Nigerian government should promote foreign capital inflows through the FDI in order to achieve the desired level of manufacturing sector growth in the Nigerian economy. The Nigerian government should encourage foreign capital inflows through the FPI in order to attain the desired level of manufacturing sector growth in the national economy. Finally, the Nigerian government should support foreign capital inflows through the FOA in order to attain the desired level of manufacturing sector growth in the national economy.