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Economic theory argues that foreign direct investment (FDI) and external debt are expected to enhance economic growth in any given economy. Consequently, this study (i) investigated the relationship between foreign direct investment, external debt servicing, and economic growth in Nigeria; (ii) investigated how foreign direct investment and external debt impact Nigeria's economic growth; and (iii) analyzed the direction of causality among the three macroeconomic variables. Descriptive statistics, time series autoregressive distributive lag, and robust Granger causality tests were adopted as the estimating techniques. The results showed that from 2011 to 2022, Nigeria's FDI continued to decline, Nigeria's external debt servicing continued to grow on an upward trajectory, and the growth of the GDP has been meandering. ARDL analysis results confirmed that the lag of FDI and current exchange rate exert positive effects on current economic growth in Nigeria, with a 1% increase in FDI, current external debt, and current exchange rate increasing growth by 1.49%, 1.58%, and 0.02%, respectively. Results from the Granger causality showed that FDI and external debt do Granger cause GDP in Nigeria. Policymakers should focus on prudent debt management practices and strive to reduce domestic debt levels. [ABSTRACT FROM AUTHOR]

Most developing countries, including Nigeria, are stuck in a vicious cycle of low investment caused by insufficient domestic savings, resulting in inadequate capital formation and a large savings-investment gap. Given the significance of investment in poverty alleviation and economic growth, the study conducted a disaggregated analysis on the impact of various measures of investment on economic growth in Nigeria from 1981 to 2020. Using the conventional and structural break stationarity tests, as well as the autoregressive distributed lag (ARDL) approach, the epistemological findings confirm a compelling co-integrating relationship among the study variables and show that credit to the private sector, domestic investment, economic liberalization, foreign portfolio investment, and interest rate have a significant positive impact on long-term growth, whereas foreign direct investment, capital expenditure, and inflation rate retarded growth substantially in the long-run. Furthermore, the short-run results revealed that economic liberalization, private-sector credit, and portfolio investment all correlate positively with growth. In contrast, foreign direct investment, infrastructure spending, and inflation rate are profoundly negative. The study therefore advocated for effective fiscal and monetary policy coordination to lower the cost of doing business, incentivize and open up opportunities for domestic and foreign investors, increase infrastructure spending to create jobs, reduce poverty and sustain growth. [ABSTRACT FROM AUTHOR]

This study investigates the impact of conflict and insecurity on foreign direct investment (FDI) inflows and socio-economic development in Nigeria from 1983 to 2013. It explores the dynamics between Nigeria's economic growth, marked by becoming Africa's largest economy in 2014, and the challenges posed by decades of conflicts, using the theoretical framework of Conflict Theory. The research employs an ARDL bounds testing approach to analyze the relationships between FDI and key economic indicators, concluding that trade openness significantly attracts FDI, while conflict notably deters it. Despite the negative impact of conflict, the positive role of a larger GDP on FDI affirms the Size-of-Market Hypothesis, suggesting that Nigeria's market size continues to appeal to foreign investors. The study's findings have implications for policy, emphasizing the need for economic liberalization, political stability, and conflict resolution to foster a conducive investment environment. It highlights the necessity for investors to assess political risks and suggests further research into additional factors influencing FDI. Overall, the study underscores the importance of stability and growth-oriented policies for enhancing FDI inflows, contributing to the discourse on economic development in emerging economies. [ABSTRACT FROM AUTHOR]

This study assessed the moderating effects of security threats on investment-economic growth nexus in Nigeria from 1986 to 2021 using the Vector Error Correction Model approach. Domestic investment and FDI were found to have a positive impact on Nigeria's long-term economic growth. The study also found that security threats have a strong negative effect on economic growth in Nigeria, and that the presence of security threats significantly reduced the positive influence of investment on economic growth in Nigeria. Thus, the marginal effects of investment when there are security threats in Nigeria was worsened. The study therefore emphasized that security threats significantly hinder the positive contributions of domestic and foreign investments to economic growth, especially foreign direct investment. Therefore, the study recommends that Nigerian government should enhance security measures to combat political instability, terrorism, and social unrest in order to create a more favourable business environment and encourage both domestic and foreign investment. [ABSTRACT FROM AUTHOR]

The low level of domestic capital formation experienced in most developing economies coupled with the desire for sustainable economic growth has necessitated the need to seek assistance in the form of foreign direct investment (FDI) to bridge the savings-investment gap. This study, therefore, examined the impact of FDI and domestic capital formation on the economic growth of Nigeria. Data were sourced from CBN statistical bulletin from 1986-2021 using Autoregressive distributed lag coupled with Granger causality tests. The result showed that domestic capital formation has an insignificant positive impact on economic growth while FDI revealed an insignificant negative relationship. Exchange rate, interest rate, and inflation rate showed an insignificant negative relationship with the economic growth of Nigeria. It was therefore recommended that governments at various levels should create an enabling environment conducive to domestic capital formation and investment process bearing in mind the stability of macroeconomic variables in the country. More so, Nigerian government should look inward, rely less on foreign direct investment and develop the country's infrastructure facility to aid investment. [ABSTRACT FROM AUTHOR]

Economic growth characterizes the quantitative changes that occur in economic variables and attributed to overall increase in production per capital. This study examined the economic impact of exchange rate, foreign direct investment, inflation rate and the trade balance on Nigeria GDP over the period of 1970-2022. The dynamic causal association among the selected macroeconomic variables and economic growth in Nigeria was evaluated via the implementation of vector error correction model (VECM) procedures and impulse response functions. The VECM estimates and the impulse response shows that the response of GDP to inflation and exchange rates is positive while the response of GDP to a one period shock to the trade balance yields a marginal negative depreciation. The result justifies that the place of Exchange rate, Inflation and Trade Balance to Nigeria economic growth cannot be overstated. The results of the work suggest that to promote stable and sustainable economic growth, policy makers should lay more emphasis on encouraging stable and reasonable exchange rate. Also, the work recommends that to promote economic growth and keep inflation low in Nigeria, Anti-inflationary policies should be accompanied to attract foreign investors and frustrate capital fleeing from the country. [ABSTRACT FROM AUTHOR]

This study examined the direct and indirect impact of foreign direct investment (FDI) on poverty reduction in Nigeria using the Autoregressive Distributed Lag (ARDL) framework for the period 1981-2019. The results of the study revealed that foreign direct investment exerted a significant positive effect on economic growth and economic growth, in turn, significantly contributes to poverty reduction within the period of review 1981-2019. This implies that FDI indirectly contributes to poverty reduction via economic growth. Regarding the direct impact of FDI on poverty reduction, the study shows that FDI significantly exerted an adverse effect on poverty via relatively low income and loss of jobs. Similarly, the study shows that wage and private-sector credit contribute to poverty reduction. [ABSTRACT FROM AUTHOR]

The need for economic development has preoccupied policymakers over the years. Especially the global south such as Nigeria, which is plagued with infrastructural deficit and less foreign direct investment and financial development attraction. This has drawn the attention of stakeholders and government officials for exploration of alternative routes for sustainable development, which is in line with the United Nations Sustainable Development Goals‐8 (UNSDG's). Thus, the current study focuses on the FDI‐led economic growth hypothesis if it holds or not for the case of Nigeria. The present study is distinct from previous studies in terms of scope by incorporation of more covariates, which has seemed to have been overlooked in the FDI argument. To this end, the current study re‐investigates the connection between FDI, financial development, total labour force, gross capital formation, and economic growth using Nigeria as a representation for Africa and Sub‐Saharan states specifically. Annual time‐series data from 1970 to 2018 is adopted for the econometrics analysis. Our study interest variables are foreign direct investment, economic expansion (GDP). The present study inculcates two additional financial development indicators; from the banking, and financial sectors. Using a battery of unit root and stationarity tests the study explores the stationarity properties of the outlined variables. Subsequently, the novel and recent robust Bayer and Hanck (2013) combined cointegration test in conjunction with Pesaran's ARDL bounds test was used to investigate the equilibrium relationship and regression analysis. While the Toda‐Yamamoto Granger causality was used to detect the direction of causality analysis among the variables. Empirical investigation traces a long‐run equilibrium relationship among the variables over the sampled period. Furthermore, empirical results show that FDI influences GDP, which suggests that FDI influences economic growth which is indicative of policymakers. Similarly, empirical outcomes establish a significant relationship between GDP and Financial Development from banking‐sector which is also corroborated in the causality results as an indirect causality is seen running from GCF to the financial sector. These outcomes suggest that FDI and Financial development are good predictors for sustainable economic growth in Nigeria. All aforementioned results have its inherent policy implications which are elucidated in the concluding remark of this study. [ABSTRACT FROM AUTHOR]

Driven by the increasing level of environmental degradation in developing countries, especially Nigeria, and the conflicting empirical results, this study investigates the impact of economic growth, natural resources, urbanization, human capital, financial development, foreign direct investment, and trade openness on the ecological footprint (EFP) in Nigeria between 1970 and 2017. The study accounts for structural breaks in the data using the Zivot–Andrews unit root method along with other conventional unit root tests. Autoregressive Distributive Lag (ARDL) and Granger causality estimation techniques are used to determine the short- and long-run effect as well as the causal direction between the variables. The outcomes of the study suggest that economic growth, foreign direct investment, and trade openness contribute positively to EFP, hence worsening environmental quality. However, urbanization, financial development, natural resources, and human capital abate the EFP in Nigeria. The findings from the granger causality test reveal a unidirectional causality from economic growth, foreign direct investment, and trade openness to EFP; while bidirectional causality exists between natural resources and EFP; and urbanization and EFP. The results are robust to different estimation techniques. Lastly, measures to ensure environmental sustainability in the context of Nigeria are suggested. [ABSTRACT FROM AUTHOR]

Following the fact that above average contribution to the Nigerian economic growth come from petroleum industry and agriculture which are dominated by multinational companies, the author undertakes the task to unveil the level of emission from these sectors. The current paper adopts FDI and agricultural sector as among the vital indicators in determining the position of Nigeria in climate change. This study builds on the ecological footprint in accounting for environmental performance of Nigeria. Basic contribution of this paper is in its two‐stage analyses of ARDL regression and causality with both ecological based and growth based models. This unveils both the economic and ecological footprint implication to the environment. The findings of this paper are: a positive (elasticity) relationship between economic growth (GDP) and ecological footprint is established in both the short run and long run. Negative and significant relationship is uncovered between FDI and ecological footprint. Negative association between agricultural sector and ecological footprint in both long run and sort run. The relationship that exist between these variables (energy use and population) and ecological footprint are positive which means unfavorable implication to the environmental performance. Moreover, the findings according to Granger causality are: a uni‐directional causality passing from economic growth to ecological footprint, from energy use to ecological footprint, and also from population to ecological footprint. Also, a one‐way transmission is established amongst economic growth and energy use, and between economic growth and population. This is in conformity with the expectations of the author, and has established a nexus among the selected variables (population and energy transmitting to economic growth, while economic growth and energy transmitting to ecological footprint). With these findings especially from FDI and agriculture, the authorities of the country are expected to build a sustainable policy framework in promoting, regulating and sustaining the trend with mindset of maintaining a healthy environment. [ABSTRACT FROM AUTHOR]

This study aims to reinvestigate the long run relationship between credit market development and economic growth in Nigeria covering the years between 1981 and 2016 by applying recently developed econometric techniques. In addition to measures of credit market development indicators of domestic credit to the private sector and broad money, trade openness, foreign direct investment and urbanization are also included in estimations to overcome the omitted variable problem. The measure for economic growth used is real gross domestic product. To the best of our knowledge, no study has been conducted before, examining these relationships with all these listed indicators. Therefore, this study proposes to close this gap in the literature. To capture the long run effects, we used ARDL, Fully Modified Ordinary Least Squares, and Dynamic Ordinary Least Squares estimator approaches. Findings uncover that (a) a long run equilibrium relationship exists between credit market development and economic growth, (b) economic policy makers are required to seek after developing the credit market with the main intention of guaranteeing that banks and other money related establishments are enabled and empowered to give the essential funds to the beneficial part of the economy which are urban and private sectors. [ABSTRACT FROM AUTHOR]

This paper investigates the moderating role institutional quality plays in foreign direct investment led growth hypothesis in Nigeria from 1984 to 2018 using autoregressive distributed lag estimation technique. Specifically, the study contributes to the literature by using seven different institutional indicators to moderate the effect of foreign direct investment on economic growth. The findings reveal that foreign direct investment has no direct (positive) effect on economic growth in Nigeria. However, the interactive effect of institutional indicators with foreign direct investment has significant impact on economic growth in most of the models. This implies that institutions serve as important absorptive capacity that needs to be strengthened for the country to benefit maximally from the growth effect of foreign direct investment. This study therefore concludes that good institutional quality matters for foreign direct investment and growth in Nigeria. [ABSTRACT FROM AUTHOR]

This paper deals with the relationship between Foreign Direct Investment from China in Africa and the growth level in five African countries. Based on the high degrees of persistence observed in the data, we use techniques based on long memory models, and our results indicate that of the five countries examined, namely Kenya, Zimbabwe, Zambia, Nigeria and South Africa, only for Nigeria do we find a significant positive relationship between the two variables though under some assumptions, this evidence is also found in the cases of Kenya and South Africa. Several arguments are put forward at the end of the article to justify these results. [ABSTRACT FROM AUTHOR]

The study analyzed the impact of stock market liquidity on economic growth in Nigeria during periods of regulation and deregulation of the stock market. It seeks to ascertain if the stock market can serve as a reliable avenue to grow the Nigerian economy so that the government can quit excessive public borrowing that has been the practice in recent times. Time series data from 1960-2020 on stock market liquidity, government expenditure, foreign direct investment, interest rate and per capita income, obtained from Statistical Bulletin of the Central Bank of Nigeria (2020) are used for the study. The data are divided into two periods such as 26years of stock market regulation (1960-1985) and another 26 years of stock market deregulation (1995-2020). These compared the impact of stock market liquidity on economic growth between the two periods. Two stage least squares (2SLS) and Granger Causality methods were employed for the analysis The results showed that the impact of stock market liquidity on economic growth in Nigeria is positive and significant during the periods of stock market regulation and stock market deregulation. These results are consistent with the argument of the supply leading hypothesis. As such, development of the Nigerian stock exchange contributes to the growth of the Nigerian economy. However, the results revealed that the impact of stock market liquidity on economic growth in Nigeria was stronger during periods of stock market regulation. This goes to show that deregulation of the stock market has not promoted economic growth as much as regulation of the stock market has done in Nigeria. The adoption of deregulated policies in the Nigerian stock market came with volatility in stock market liquidity. This variation lowers the contributions of the stock market towards Nigeria economic performance. In other words, periods of high volatility in the Nigerian stock market lowers the positive contributions of the market to the domestic performance of the economy. The study concluded that economic growth in Nigeria is better enhanced when there are mild variations in stock market liquidity. Hence, stock market liquidity has stronger positive contributions to economic growth in Nigeria when volatility is low in the market. It is recommended that policy makers should come up with administrative actions and policies that address these issues of volatility in the Nigerian Stock market. Doing so would not only improve rational investment decision making, but would also help to remove uncertainty as often envisaged by players in the market. This can encourage increasing domestic productivity in Nigeria. [ABSTRACT FROM AUTHOR]

This article investigates the dynamic effects of foreign direct investment uncertainty on financial development in Nigeria and the interacting role of financial inclusion and economic growth. We used the annual time series data of Nigeria covering the period 1970-2018. Through advanced econometric techniques, we first substantiated stationarity level and co-integration among the scrutinized variables, which is genuinely done for reliable findings. Following that, we applied Gregory and Hansen (1996) co-integration test, Non-linear ARDL as the elasticity estimator, and Diks and Panchenko (2006) causality test for the analysis. The Empirical evidence postulates the asymmetric nature of foreign direct investment uncertainty to financial development. We also found a non-linear uni-directional causality running from economic growth to financial development, foreign direct investment uncertainty to financial development, and financial inclusion to financial development. In the end, the authors proposed the needed policy recommendations to strengthen the Nigerian financial sector. [ABSTRACT FROM AUTHOR]

Any resource channeled into security has a trade-off effect, as it denies other sectors of the economy the needed resources that could be employed to enhance economic growth and welfare of the citizenry. This study examined the possible impacts of internal security expenditure on economic growth in Nigeria. Employing Autoregressive Distributed Lag (ARDL) estimating technique, the study estimated both the short-run and the long-run interactions between the chosen variables. The estimated result found internal security to be positively and significantly related to economic growth in the shortrun but exhibits a negative and significant relationship with economic growth in the long-run. The result also revealed a negative and significant relationship between foreign direct investment and economic growth. Finally, the test for structural breaks found evidence for five breakpoints which interestingly corresponded with the periods of some structural and government policy changes in Nigeria. It is therefore recommended that resources to be channeled on security should be considered cautiously as not to adversely affect economic growth. Secondly, government should employ robust policies that would encourage foreign investments into the economy. [ABSTRACT FROM AUTHOR]

For the past few decades, remittances, as a veritable source of foreign capital flow, have impacted the economies of many less developed countries through various channels as recorded in extant literature. However, these flows have been characterized by wide fluctuations occasioned largely by economic downturns in migrants host countries with attendant consequences on recipient countries. Thus, this study seeks to investigate the impact of such volatilities in remittances on inclusive growth within the Nigerian context, using the Fully Modified Ordinary Least Square (FMOLS) for the period 2000 to 2018. The result shows that remittance-led economic growth hypothesis was not confirmed, as fluctuations in remittances inflow had negative impact on economic growth. Conversely, the study however confirmed the health-led growth hypothesis as the healthoriented official development assistance impacted positively on economic growth. The study therefore recommends the implementation of relevant policies aimed at mitigating the volatilities in remittances inflow as well as improving on the administration and management of such health aid. [ABSTRACT FROM AUTHOR]

There are debates regarding the effect of globalization on national economies, and whether or not trade openness has a significant positive or negative influence on economic expansion and development. Thus, this study is aimed at investigating the relationship between trade globalization and Nigeria's economic advancement. The autoregressive distributed lags (ARDL) model was employed for the time series data: real GDP, openness, foreign direct investment, and population growth over the period 1981–2017. The findings of this estimation revealed that population growth is significant but inhibitor of economic prosperity (real GDP) in the short term. However, the significant and long‐run determinants of the real GDP are population growth and trade openness but not foreign direct investment. Furthermore, the Granger Causality test revealed that real GDP granger causes population growth. The study therefore concluded that trade openness and globalization are necessary for Nigeria's economic expansion and development. Consequently, the study opined that the land border closure policy recently implemented by the Nigerian government might necessitate a significant reassessment so that the economic development projections of the country are not hindered. [ABSTRACT FROM AUTHOR]

The purpose of this study was to investigate direct effects of capital inflow, financial deepening on economic growth in Nigeria due to diverse contentions it stirred among researchers from 1981 to 2018 using the Autoregressive Distributive Lag (ARDL) co-integration approach. The findings from the study showed the existence of a long-run relationship between foreign capital inflows and economic growth in Nigeria. Furthermore, the ARDL regression estimate results pointed that foreign direct investment (FDI), foreign aids (FA) and financial development (FD) have a positive and significant impact on economic growth, while on the contrary, remittances exerted a negative and insignificant relationship on economic growth. Also inflation and exchange rate results showcased a negative impact on economic growth. Based on the findings of this study, we conclude that capital inflows (FDI, & FA) positively impact the Nigerian economy both in the short run and long-run within the study period via sound financial deepening, thus concluding that capital inflows are a potential driver of economic growth in Nigeria. Consequently, the study recommends that the central bank should employ a more restrictive monetary policy to suppress the adverse effect that could emanate from inflationary pressure which can distort proper channeling of capital inflows into the country. [ABSTRACT FROM AUTHOR]

This study examines the relationship between volatility in capital inflows and economic growth in Nigeria for the period 1986 to 2018. Specifically, this study address to research question "does volatility in component of capital inflows (foreign direct investment, foreign portfolio investment and other investment flows) affect economic growth differently?" This study employs the Auto-Regressive Distributed Lag (ARDL) method and the result of the study showed that volatility in capital inflows (measured in aggregate or component) negatively affected economic growth (albeit volatility in foreign direct investment was insignificant). The result of the study also shows that volatility of component of capital flows influenced economic growth differently (in terms of significance and magnitude). The study concludes that volatility in short term capital flows (foreign portfolio investment and other investment flows) hindered economic growth while volatility in long term capital flows (foreign direct investment) does not. Consequently, the study recommends the need for sound macroeconomic policy management such as effective monetary supervision and regulation capable of ensuring financial stability in both the banking and the capital markets which will improve investors' confidence and reduce the volatility of capital inflows in Nigeria. [ABSTRACT FROM AUTHOR]

This paper attempts to find out the relationship between foreign direct investment (FDI) and economic growth in MINT economies namely, Mexico, Indonesia, Nigeria and Turkey, during 1981-2015. It investigates the causal link between the two variables, i.e. whether FDI causes economic growth or economic growth causes FDI. To test the relationship between the variables, panel data of four countries is analysed. Cointegration technique, Granger causality test and Vector Error Correction Model (VECM) have been used to validate the relationship between the variables. The analysis of the results shows that there exists cointegration between FDI and economic, i.e. there exists a long-run relationship between FDI and economic growth. Longrun causality was found moving from GDP to FDI in Mexico, Nigeria and Turkey. This is important for policy decision-making as barriers to FDI inflows should be removed, and growth can be maximized by increasing the capacity to absorb FDI inflows. [ABSTRACT FROM AUTHOR]