Foreign Direct Investment, Energy Infrastructure and Manufacturing Output in Nigeria

Authors

  • Ademola Onabote Department of Economics, Landmark University,Omu-Aran.
  • Ojamaliya Abuh Department of Economics and Development Studies, Covenant University.
  • Oduntun Emmanuel Department of Mathematics, American University of Nigeria.
  • Oluwasegun Eseyin Department of Economics, Landmark University,Omu-Aran.
  • Victoria Okafor Department of Economics and Development Studies, Covenant University.

Abstract

In recent years, developing countries like Nigeria with large human and natural resources have attracted huge investment leading to a rise in foreign investment into the Nigerian economy. To create the conditions that would attract more Foreign Direct Investment into the manufacturing subsector, the right infrastructure must be put in place. This study examined the relationship between Foreign Direct Investment, infrastructure and manufacturing output in Nigeria. Time series data between the periods of 1981-2016 was used. Johansen cointegration was used to assess the relationship between Nigeria's foreign direct investment, infrastructure, and production efficiency. The result showed that the explanatory variables and the manufacturing production in Nigeria have a long-run relationship. The relationship between foreign direct investment, infrastructure and manufacturing production in Nigeria is also found to be significant and positive. Following the finding of the study, specific policy recommendations were made to improve energy infrastructure for the manufacturing sector and keep foreign investment flowing into the economy.

Keywords: Foreign Direct Investment, Energy Infrastructure, Manufacturing output

JEL Classifications: E22, F21, L60, O14

DOI: https://doi.org/10.32479/ijeep.9686

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Published

2021-04-10

How to Cite

Onabote, A., Abuh, O., Emmanuel, O., Eseyin, O., & Okafor, V. (2021). Foreign Direct Investment, Energy Infrastructure and Manufacturing Output in Nigeria. International Journal of Energy Economics and Policy, 11(3), 163–169. Retrieved from https://econjournals.com/index.php/ijeep/article/view/9686

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