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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Akinlo A.E. and Odusola A.F. Structural Adjustment, Industrial Development and Urban Poverty in Nigeria. Journal of Economic Management Vol. 4(l), 1997.
Akinlo,A.E. “Improving the Performance of the Nigeria Manufacturing Sub-Sector after Adjustment: Selected Issues and Proposals.” Nigerian Journal of Economic and Social Sciences, July 38(2): 91 – 110, 1996.
Akinlo, A.E. “Foreign direct investment and growth in Nigeria: An empirical investigation”. Journal of Policy Modelling, 26: 627–39, 2004.
Akpobasah, M. “The Development Strategy for Nigeria”. A Paper Presented at the Overseas Development Economic Summit Group Meeting on Nigeria, London, June 16- 17, 2004.
Ariyo, A. “Investment and Nigeria’s economic growth: Investment in the Growth Process”. Proceedings of the Nigerian Economic Society Annual Conference 1998, 389–415. Ibadan, Nigeria.
Berg, H. “Economic Growth and Development”. McGraw-Hill, International Edition, Economic Series, 2001.
Civcir, I. “Broad Money Demand and Currency Substitution in Turkey”. The Journal of Developing Countries, 36(1): 1-19, 2003.
Chen, Y. and Demurger, S. “Foreign Direct Investment and Manufacturing Productivity in China.” 2002.
Christopher E. “Employment Link in a Globalization World: The Case of Argentina, Brazil and Mexico”. Employment Analysis Unit, Employment Strategy Department. June, Lagos, 2005.
Enders, W. Applied Econometric Time Series, New York, John Wiley, 1995.
Feldstein, M “Aspects of Global Economic Integration: Outlook for the Future” NBER working paper No 7899, Cambridge, Massachusetts, 2000.
Fung, K.C., Lizaka, J. and Parker, S. “Determinants of US and Japanese foreign direct investment in China”. Working Paper No 456. University of California at Santa Cruz, Department of Economics, 2000.
Haddad, B M. And Harrison, A. “Are There Positive Spillover from Direct Foreign Investment? Evidence from Panel Data for Morocco”. Journal of Development Economics, 42: 51-74, 1993.
Hirschman, A. “The Strategy of Economic Development”. New Haven: Yale University Press, 1958.
Javorcik, B.S. Does FDI Increase the Productivity of Domestic Firm? In Search Of Spillover through Backward Linkages, 2004.
Knight, M.D., Loayza, N. and Villanueva,D. “Cross-country Analyses of Economic Growth”: An Economic Survey, 1993.
Kojima, K and Osawa, T. “Micro and Macroeconomic Models of Direct Foreign Investment: Toward A Synthesis”, Hitosubashi Journal of Economics, 25: 1-20, 1984.
Kokko. A. “Technology Market Characteristics and Spillover”, Journal of Development Economics, Vol.43, 297-293, 1994.
Kokko, A, “Productivity Spillover Form Competition between Local Firm and Foreign Affiliates”. Journal of International Development, 8, 517-530, 1996.
Mankiw, G.N. (1997) “Macroeconomics” 3rd Edition New York World Publishers, 1997.
Mankiw, G.N., Romer, D. and Weil, D.N. “A contribution to the empirics of growth”. Quarterly Journal of Economics, 107, 407–37, 1992.
NEEDS “National Planning Commission of Nigeria”. Reprinted by Central Bank Nigeria. Abuja, Nigeria, 2004.
Ndebbio, J.E.U. “Industrial Development Policies /Incentives and their Impact on the Nigerian Economy the Nigerian Economy at the Crossroads: Policies and their Effectiveness”. University of Calabar Press, Calabar, 11-13, 1991.
Nwachukwu,I.A “The Impact of Bank Portfolios on Economic Activity: An empirical analysis”. Nigerian Financial Review 6(3): 16-23, 1993.
Nwankwo, U. “Economic Agenda for Nigeria”, Centrist Productions Limited, Lagos.1992.
Obadan, M. “Foreign Capital Flows and External Debt: Perspectives on Nigerian and the LCDs Groups”. Broadway Press Limited, Lagos.2004.
Odedokun, M.O.”Factors Responsible for the Poor Performance of African in the 1970s and 1980s. Cross-Sectional Evidence from 42 Countries” African Development Review, 5(1): 23-61. 1993.
Ojo, M.O. “Principles and Practice of Monetary Management in Nigeria”. Central Bank of Nigeria, December, Part 11, chapters 11- 13. 2001.
Olorunsola, J.A. “Industrial Financing in Nigeria: A Review of Institutional Arrangement. Central Bank of Nigeria”. Economic and Financial review, March, 39(1): 40-72. 2001.
Solow, R.“Introduction to Modern Theory of Economic Growth” Oxford Journal of Economics, Nelson London.1975.
World Bank “Global Economic Prospects and Developing Countries” Washington D.C. 1992.
World Bank “Prospects of Sustainable Growth 1995-2005” Washington D.C. 1996.
World Bank, “Private Capital Flows to Developing Countries: The Road to Finance Integration” Oxford University Press, New York. 1997.
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World Bank, “Can African Claim the 21st Century”? Washington, D.C. 2000
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Yesufu, T.M. “The Nigeria Economy: Growth without Development”. Kraft Books Limited. Ibadan. 1996.
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Published
2011-11-01
How to Cite
Oyebola, A., & Adebayo, A. (2011). Relative Contribution of Foreign Direct Investment (FDI) On the Performance of the Manufacturing Sector in Nigeria. Ife Journal of Technology, 20(2), 23–29. Retrieved from https://ijt.oauife.edu.ng/index.php/ijt/article/view/88
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