You have no items in your shopping cart.
ABSTRACT
The study examined the impact of foreign direct investment of institutions on economic growth in Nigeria using time series data between 1981 and 2016. Secondary data were sourced from Central Bank Statistical Bulletin and World Development Indicators (WDI). An exploratory research design was conducted using the Vector Autoregressive (VAR) and Vector Error Correction Models (VECM) approach. The results discussed in the study includes descriptive statistics, the correlation matrix was used to determine if there any correlations among our variables, unit root tests (Augmented Dickey-Fuller test) to check for the stationarity of our variables. To check for long run relationship of our variables, the study made use of the Johansen cointegration test, To ascertain how quick our variables return back to equilibrium after a shock of fluctuations in the economy, the Vector Error Correction Method was applied. The forecast Error Variance Decomposition was used to measure total variability due to shock in the variable itself relative to shocks in all other variables in the model. The major objective of this paper is to analyse the impact between foreign direct investment, institution and economic growth in Nigeria. The result of the analysis shows a positive relationship between foreign direct investment and real GDP proxy for economic growth which is in line with the appropriate expectations, political stability which is used as a proxy for institutional quality violated the appropriate expectations. This may due to the state of the political enfironment in the country as well as the issues of security for example the Boko Haram and Herdsmen mayhem being experienced currently in the country, all these one way or the other affects the political environment of a country. The existence of a positive relationship between foreign direct investment and economic created enabling environment for investments opportunities for teeming Nigerians and foreigners alike.
