Search

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 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]

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]