The effect of fiscal policy on economic growth in nigeria. Nigeria is sub saharan africas largest economy and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Determinants of economic growth in nigeria kazeem b. Secondary data were sourced from the central bank of nigeria, international monetary fund and the federal office of statistics.
Still on,, impact of agricultural sector on nigeria economic growth and development 19812015. The capital market provides a means through which this is made possible. A multivariate regression approach was employed to. A multivariate regression approach was employed to estimate augmented growth models.
Human capital development and economic growth in nigeria. Fdi in nigeria contributes positively to economic growth. To identify whether foreign direct investment has an effect on economic growth to examine. The quest for economic growth and development compelled nigeria to acquire external debt. Foreign direct investment fdi has been held to provide developing nations including nigeria with much needed capital for economic growth. Foreign direct investment in nigeria increased by 909. Understanding the relationship between growth and employment. Since then, nigerias economic growth has been driven by growth in. Impact of agricultural sector on economic growth of nigeria. Pdf impact of foreign direct investment on economic. For instance, oyejide 1974, using nigeria, as a laboratory test ground that an increase in export proceeds could lead to an expansion. This study believes that using a more robust estimation technique dynamic ordinary least squares which incorporates endogeneity and autocorrelation may yield more reliable result. However and in contrast to the above, sekou 2015 in his study utilised ordinary least square method to estimate.
Ayashagba and abachi 2002 investigate on the effects of foreign direct investment on economic growth from 1980 to 1997. The impact of foreign direct investment on the nigerian. Nov 02, 2016 there have been controversies regarding the effect of foreign direct investment on the growth of the host countrys economy. Impact of private sector credit on economic growth in nigeria. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic.
They argue that it is possible that the interaction of economic growth with population dynamics can result in a poverty trap. Pdf oil and nonoil fdi and economic growth in nigeria. This page provides nigeria gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Section 4 discusses the empirical results obtained in the estimation of the model formulated. Nigeria has over the years been controlling her economy through various. The importance of mining and quarrying in accelerating the pace of economic growth in nigeria should rather motivate the government to deregulate and reform the sector. Developing nigerias private sector is y to sustainable. Economic growth and the balanceofpayments constraint.
While some researchers suggest a positive effect, others found a negative effect. This study examined the influence of foreign direct investment and exchange rate on economic growth in nigeria from 1971 to 20. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. This question is of significant policy relevance, as nigeria recently launched a financial inclusion programme as a strategy for wealth creation and poverty. Chuku 2012, foreign direct investment and economic growth in nigeria. However, this paper which looks at the impact of fdi on economic growth in nigeria will be organized as follows. The nigerias economic recovery and growth plan ergp for. Nov 08, 2016 a growth model via the ordinary least square method was used to ascertain the relationship between fdi and economic growth in nigeria. Nigeria gdp annual growth rate 19822019 data 20202022. It is indeed crucial to know what one is talking about, if only to allow for the differentiation of development from economic growth. The study employed trend lines and percentage to analysis the.
Chigbu federal university of technology owerri, nigeria and federal polytechnic nekede, owerri abstract the objective of this study is to examine the impact of capital market on economic growth in nigeria. Nigerian economic growth to remain muted in 2019 and 2020. We used time series data obtained from cbn for a period of 26 years that is 1986 to 2012. It is on the premises that this research paper wishes to examine the impact of the nigeria capital market on economic growth and development from 1990 to 2011. Secondary data were employed for the study covering 1985 to 2014. An analysis of the endogenous effects, current research journal of economic theory, vol. Macroeconomic determinants of economic growth in nigeria. An overview of the nigerian economic growth and development.
An expost facto investigation seeks to reveal possible relationships by observing an existing condition or state of affairs and searching back in time for plausible contributing factors. In addition, the effect of the major components of fdi on economic growth is examined, thereby offering the opportunity to assess the differential impact of oil fdi and nonoil fdi on nigeria s economic growth. In view of the financial intermediation roles of deposit money banks, the paper supports the ongoing efforts of the central bank of nigeria cbn in promoting a. Foreign direct investment fdi is real investment interaction of the rest of the world with a domestic economy. Infrastructure development and economic growth nexus in nigeria. Also, while workable policies should be put in place to bring about an overall economic growth, expenditures on health and public education should be. Using the bound test approach, this study finds a positive long run relationship between financial. Nigerias real growth can only be assured if steps are taken to ensure that her social and economic development is all inclusive. International trade and economic growth in nigeria. This will enable the government to attract investors into the sector, while effectively planning to encourage the proliferation of smallscale artisan, mediumscale and large. Over the last 5 years, nigerias gross domestic product gdp growth averaged 6. Nigeria country profile growth and development economics.
Government expenditure and economic growth in nigeria. The economic recovery and growth plan is a reform strategy that seeks to be comprehensive in addressing the countrys challenges. The study is different from previous studies in scope number of years considered is longer. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. Ogbokor 2001, investigated the macroeconomic impact of oil exports of oil exports on the. Nigeria foreign direct investment 20072019 data 2020. Determinants of economic growth in nigeria central bank of nigeria. Foreign direct investment in nigeria averaged 1233. Time series data was used and sourced from the cbn statistical bulletin and annual reports. Contribution of agriculture to economic growth in nigeria1. Nigeria has maintained remarkable growth over the last decade, recording an average growth rate of 6.
Blows to global oil prices or domestic oil production could derail it while, in contrast, the implementation of the countrys new macroeconomic policy framework could. There have been several studies that have investigated the relationship that exist between infrastructure development and economic growth. Economic outlook 3 contents theme 1 oil prices still lower for longer theme 2 economy growth gets a boost from high oil prices theme 3 inflation declines sharply, driven mainly by base effects theme 4 monetary policy rate set to fall, and then rise theme. Relatively high annual gross domestic product gdp growth rates over the past decade have not reduced corresponding poverty rates. Development has long been a catchall phrase and it now seems that everybody has something to say on the subject. Saibu 2015 adopted the model developed by scully 2003 for cote divoire. However, this study shall look at both the impact of human capital and health on economic growth in nigeria. Abuja, may 19, 2017that the current uptick in nigerias economy relies largely on its oil sector puts its chances of lasting at risk, according to fragile recovery, an economic update produced recently by the world bank. Reduced attacks on oil pipelines have allowed nigerias production to see a gradual recovery over the past two years, following a string of attacks in 2016.
Whether these interactions mar or make economic growth depends on the area of strength of each country and usage. First, though voluminous works have been conducted on economic freedom and economic growth with foreign direct investment as an intervening variable, we are. Introduction this article overviews the growth and development of the nigerian economy from independence to present times. Abstract this study examined the impact of international trade on economic growth in nigeria, with the objective of identifying the major factors influencing economic growth through international trade and make policy. Following the 200809 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. This page provides nigeria foreign direct investment. A temporary uptick in nigerias oil production will bring real gdp growth to 2. The study examines the macroeconomics determinants of economic growth in nigeria measured by real gross domestic product rgdp. Capital accumulation and economic growth in nigeria. Agriculture has been the backbone of the economy in nigeria providing employment and source of livelihood for the increasing population it accounts for over half of the gdp of the nigerian economy as at independence in 1960 tonuchi, 2017. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in nigeria. Nigeria is making increasing amounts of money from manufacturing and services. Nigeria with the much needed capital for investment which improved economic growth.
In nigeria some authors had examined the performance of foreign trade and economic growth. In recent years, all her efforts to grow the economy, nigerias rate of economic growth has remained very volatile and sluggish. Augmented dickeyfuller adf test was used for the unit root test and johansens cointegration test was also conducted to. But it will build up trade surpluses if exports exceed imports. Nigeria is an nee and one of the economic leaders in africa. Impact of inflation on economic growth in nigeria 20002009 1chude, daniel izuchukwu and 2chude, nkiru patricia 1lecturer, department of accountancy anambra state university igbariam campus p.
The recommendations drawn from the study centered on revisiting the manpower needs of the various sectors of the economy. Increase in savings leads to increase in capital formation and production activities that will lead to employment creation and reduce external borrowing of government. Their result revealed that foreign direct investment had significant impact on economic growth in nigeria. Nigeria gdp economic growth quickens to over fouryear high in q4 2019. At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. Impact of human capital development on economic growth in nigeria. Although the overall effect of fdi on economic growth may not be significant, the components of fdi do have a positive impact.
The countrys recovery is also slower than in similar countries, mainly commodity exporters with large populations. In the 1960s, nigeria was on a par, in terms of aspirations to attain a very high level of economic growth and development, with its fellowoil producing and exporting countries such as malaysia and indonesia, but has since failed to keep pace with them. However, the results emanating from these studies have been inconclusive. Nigeria gdp growth rate 20102019 data 20202022 forecast.
In the fourth quarter of 20 the gdpin nigeria increased to 7. The study made use of expost facto research design. A mutual correlation exists between infrastructural development and economic growth in nigeria. The the economy slowed sharply, as annual real gdp recovery was in part due to a sharp recovery in the. Similarly, 19 examined the relationship between finance and economic growth in nigeria from 19752008 and employed the bound test autoregressive distributed lag ardl approach. The economy shifted into a higher gear in the final quarter of last year, with annual gdp growth accelerating from 2. Effect of foreign direct investment on economic growth in. Pdf foreign direct investment and economic growth in nigeria. It is, therefore, necessary to investigate holistically domestic investment, and economic growth in nigeria between the periods of 19802016.
The stationarity of the variables were tested using. The objective of the study was to determine if stock market development significantly impact on the countrys economic growth. The economy is now on a slow track for the first half 2015 with around 3. Inflation and economic growth in nigeria omoke journal of. May 03, 2016 the research was adopted to examine the effect of fiscal policy on economic growth in nigeria. Sanusi 2010 opined that economic growth would be achieved at a faster rate, if all segments of the population have access to. Objectives of the study international journal of management science, volume 3, number 3, 2011, pp 4755. Nigerias economic recovery defining the path for economic growth. There is no significant impact of domestic investment on economic growth in nigeria. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by. Bloom and canning 2001 are among the few who explore the effect of the demographic transition on economic growth. This study examined the effect of stock market development on nigerias economic growth. Pdf financial development and economic growth in nigeria.
A region or a country can go on exporting as much as it likes. This paper examines the causal relationship between globalization and economic growth in nigeria from 1981 to 2012. Umoh introduction this article overviews the growth and development of the nigerian economy from inde pendence to present times. Consumer price index cpi was used as a proxy for inflation and the gdp. This paper examines the effects of financial inclusion on the economic growth of nigeria 19822012. This study therefore examines the major economic growth determinants as well as the direction of causality that exists between economic growth and some selected economic growth indicators in nigeria, employing the johansen cointegration and granger causality tests. To examine the relationship between foreign direct investment and economic growth in nigeria. According to the updated imf forecasts from 14th april 2020, due to the outbreak of the covid19, gdp growth is expected to fall to 3. Data for the study are collected mainly from secondary sources such as statistical bulletins of the central bank of nigeria c.
Fdi, employment and economic growth in nigeria request pdf. The gross domestic product gdp in niger expanded 6 percent in the fourth quarter of 2019 over the same quarter of the previous year. The ergp sets the ambitious target of 7 percent real gdp growth by 2020. Nigeria is now at the midpoint of carrying out its development plan 19621968. It is expected to increase by 4060% and will then become the largest economy in africa. Writers, researchers, journalist, and the media have tried to lay emphasis on the need for nigeria to strengthen its foreign economic ties in other to improve its economic status. The economic context of nigeria economic and political. Impact of foreign direct investment fdi on the growth of. Nigeria is rich in oil, and this makes 75 per cent of government money, but the rapid economic growth over 7 per cent per year since 2009 is found mostly in the nonoil sector according to the imf. The methodology employed in this study is the cointegration and granger causality test. Niger gdp annual growth rate 19612019 data 20202022. This is initially driven by the oil sector and then increasingly by strong non oil sector growth agriculture, manufacturing, and services. Nigeria will be recalculating its gdpin 2014 to reflect structural changes in the economy.
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