Nexus Between Foreign Direct Investment and Economic Growth in Nigeria: The Role of Exchange Rate

IF 0.7 Q4 BUSINESS, FINANCE
Nya’akunat Elisha-Hosea Batat, E. Ahmadu
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引用次数: 1

Abstract

Having reviewed previous empirical studies on the relationship between foreign direct investment and economic growth, limited attention was given on the role of exchange rate on the relationship between foreign direct investment and economic growth. Therefore this study investigates the role of exchange rate on the relationship between foreign direct investment and economic growth over the period 1986 to 2018 using annual time series data sourced from the Central Bank of Nigeria Statistical Bulletin. Augmented Dicker-fuller Unit Root Test and ARDL model were used for the analyses. The ARDL Bounds test to cointegration revealed that economic growth, foreign direct investment, export, import and exchange rate do not have long run relationship over the period under study. The results showed that foreign direct investment has positive relationship with economic growth at maximum, average and minimum level of exchange rate but the relationship is only significant at maximum level over the period under study. This means that at maximum level of exchange rate, an increase in foreign direct investment will lead to a risein economic growth. The results also showed that export has significant positive relationship with economic growth meaning that an increase in export will lead to a rise in economic growth while import showed insignificant negative relationship with economic growth. Based on the results, the study recommended that further depreciation of Nigeria’s currency should be encourage so as to allow more inflow of foreign direct investment considering its positive impact on economic growth while the Nigerian Government is encouraged to design and implement policies that will spur export by eliminating stringent excise duties and discouraging import which exerts negative influence on economic growth.
外国直接投资与尼日利亚经济增长的关系:汇率的作用
回顾了以往关于外国直接投资与经济增长关系的实证研究,对汇率在外国直接投资和经济增长关系中的作用关注有限。因此,本研究使用来自尼日利亚中央银行统计公报的年度时间序列数据,调查了1986年至2018年期间汇率在外国直接投资与经济增长之间关系中的作用。采用增广Dicker-fuller单位根检验和ARDL模型进行分析。对协整的ARDL边界检验表明,在研究期间,经济增长、外国直接投资、出口、进口和汇率不存在长期关系。研究结果表明,在汇率的最高、平均和最低水平上,外国直接投资与经济增长呈正相关,但在研究期间,这种关系仅在最高水平上显著。这意味着,在最高汇率水平下,外国直接投资的增加将导致经济增长的上升。结果还表明,出口与经济增长呈显著正相关,即出口的增加将导致经济增长的上升,而进口与经济增长的负相关不显著。基于这些结果,该研究建议,考虑到尼日利亚货币对经济增长的积极影响,应鼓励尼日利亚货币进一步贬值,以允许更多的外国直接投资流入,同时鼓励尼日利亚政府制定和实施政策,通过取消严格的消费税和阻止对经济增长产生负面影响的进口来刺激出口经济增长。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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