Foreign Capital Inflows and Manufacturing Sector Growth in Nigeria

Pengarang

  • Idris Ahmed Sani Sani Department of Economics, Kogi State University, Anyigba, Nigeria
  • Ajengbe Abidemi Samuel Department of Economics, Kogi State University, Anyigba, Nigeria
  • Wada Emmanuel Ome Department of Economics, Federal University of Lafia, Nigeria

DOI:

https://doi.org/10.32890/mmj2021.25.10

Kata kunci:

Foreign capital inflow, manufacturing sector, growth, foreign direct investment, foreign portfolio investment and foreign aid

Abstrak

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 through the FOA in order to attain the desired level of manufacturing sector growth in the Nigerian economy in the long run.

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Diterbitkan

2021-07-09

Terbitan

Jil. 25 (2021): Malaysian Management Journal (MMJ) Vol. 25, July 2021

Bahagian

Articles

Lesen

Hak Cipta (c) 2022 Malaysian Management Journal

Creative Commons License

Kerja ini dilesenkan di bawah Creative Commons Attribution 4.0 International License.

Cara Memetik

Sani , I. A. S., Samuel , A. A., & Ome , W. E. (2021). Foreign Capital Inflows and Manufacturing Sector Growth in Nigeria. Malaysian Management Journal, 25, 235-260. https://doi.org/10.32890/mmj2021.25.10

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##plugins.generic.citations.panel.identifiers## DOI 10.32890/mmj2021.25.10 OpenAlex W4230755538