Relative Contribution of Foreign Direct Investment (FDI) On the Performance of the Manufacturing Sector in Nigeria
Keywords:
Superalloy, nickel, Electron microscopy, Heat-affected zonesAbstract
The study identified and assessed the factors affecting manufacturing sector performance in Nigeria. This was with a view to examining how the inflows of foreign direct investment affect the manufacturing sector performance in Nigeria from 1986 to 2005. Secondary data were used for this study. These data, which included manufacturing output, FDI flows into the manufacturing sector, real per capital income, Federal Government capital expenditure, interest rate, exchange and inflation rates, from 1986 to 2005, were sourced from the Statistical Bulletin of the Central Bank of Nigeria (CBN). The results of the study showed that foreign direct investment (t = 3.23, p < 0.05), Federal Government capital expenditure (t = 3.19, p < 0.05), exchange rate (t = 4.01, p < 0.05), inflation rate (t = 2.15, p < 0.05), and real per capita income (t = 1.99, p < 0.05) positively affect the manufacturing sector and significantly determined the performance of the manufacturing sector in Nigeria; while interest rate had a negative but significant effect on the performance of the manufacturing sector (t = -2.96, p < 0.05). The study concluded that inflows of foreign direct investment (FDI) exert significant positive effect on manufacturing sector performance in Nigeria, thereby setting a platform for rapid industrialization.
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