AFOLAYAN, OLUFUNMILAYO T and JIMOH, SAIDAT O (2019) Foreign Direct Investment Inflows and Oil Exports in Nigeria: An Empirical Perspective. Saudi Journal of Economics and Finance, 3 (6). pp. 248-253. ISSN 2523-6563
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Abstract
This paper examined the long run relationship between FDI inflows and oil exports in Nigeria which most previous studies have not fully explored in recent times. Data were collected from CBN Statistical Bulletin and UNCTAD investment report from 1990 to 2016, and various diagnostic tests such as Unit Roots and Johansen co-integration were conducted. Thereafter, Dynamic Ordinary Least Square (DOLS) and Granger Causality Test were adopted to address the objective of this study. It was established that a significant positive relationship exists between FDI inflows and oil exports in Nigeria. This shows that what drives foreign investors in Nigeria is crude oil which constitutes the major share of the nation`s exports. In the same vein, there is an existence of a unidirectional causality which runs from FDI inflows to oil exports in Nigeria. This further shows that FDI inflows motivate oil exports in the country. Due to the significant findings that emerged from this study, it could be recommended that when attraction of FDI inflows are the target of the policy makers in Nigeria, improving variables like oil exports and inflation rate will induce the inflows of cross border investment accordingly in the long run. Also, the Nigerian government should be committed to effective exchange rate management which is sensitive to FDI inflows in the country
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management |
| Depositing User: | Miss Ayomikun Ogunbadejo |
| Date Deposited: | 11 Jun 2020 15:36 |
| Last Modified: | 11 Jun 2020 15:36 |
| URI: | http://eprints.federalpolyilaro.edu.ng/id/eprint/509 |
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