Foreign direct investment inflow and employment in Nigeria
-
Author(s)Romanus OsabohienLink to ORCID Index: https://orcid.org/0000-0003-4359-1368
,
Oluwalayomi David Awolola
,
Oluwatoyin MatthewLink to ORCID Index: https://orcid.org/0000-0003-3876-3479
,
Osayande Queen Itua
,
Esther Elomien
-
DOIhttp://dx.doi.org/10.21511/imfi.17(1).2020.07
-
Article InfoVolume 17 2020, Issue #1, pp. 77-84
- Cited by
- 1996 Views
-
760 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The advent of globalization has spurred the level of foreign direct investment (FDI), which has increased the employment level and economic growth in countries around the world. This scenario has also been debated in the extant literature. It is on this backdrop that this study was inspired to examine the relationship between FDI and the level of employment in Nigeria. The article uses the Fully Modified Ordinary Least Squares (FMOLS) and the Johansen co-integration econometric approach on the data, which were sourced from the World Development Indicators (WDI) of the World Bank and the Central Bank of Nigeria (CBN) statistical bulletin. The investigation period covered thirty-two years (1985–2017). Also, the authors adopted the theory of absorptive capacity as the baseline for the model. Results obtained from the study showed that foreign direct investment is statistically significant and positively related to the employment level in Nigeria. These findings imply that a 1 unit increase in the inflow of foreign direct investment to the Nigerian economy is capable of increasing the level of employment by about 0.97 units. Therefore, based on findings, the study is concluded by recommendations that the Nigerian economy should become viable through effective trade policies and programs, which are capable of attracting foreign direct investment into the Nigerian economy for employment creation.
Acknowledgment(s)
The publication support received from Covenant University Centre for Research, Innovation and Discovery (CUCRID) is appreciated
- Keywords
-
JEL Classification (Paper profile tab)F60, F43, P33
-
References28
-
Tables4
-
Figures0
-
- Table 1. Descriptive summary
- Table 2. Stationary test using Phillips-Perron
- Table 3. Johansen cointegration test
- Table 4. FMOLS results
-
- Abor, J., & Harvey, S. K. (2008). Foreign direct investment and employment: host country experience. Macroeconomics and Finance in Emerging Market Economies, 1(2), 213-225.
- Adeleke, K. M., Olowe, S. O., & Fasesin, O. O. (2014). Impact of FDI on Nigeria economic growth. International Journal of Academic Research in Business and Social Sciences, 4(8), 234-242.
- Afolayan, O., Okodua, H., Matthew, O., & Osabohien, R. (2019). Reducing unemployment malaise in Nigeria: the role of electricity consumption and human capital development. International Journal of Energy Economics and Policy, 9(4), 63-73.
- Asiedu, E. (2006). FDI in Africa: the role of natural resources, market size, government policy, institutions and political instability. The World Economy, 29(1), 63-77.
- Bellow, A. (2003). In praise of Nepotism Americans censure nepotism on the one hand and practice it as much as they can on the other. There’s much to be said for “good” nepotism, the author argues-which is fortunate because we’re living in a nepotistic Golden Age. Atlantic Monthly, 292(1), 98-105.
- Chea, A.C (2011). Sources of global private capital flows: What developing countries can do to attract, manage, and retain global private capital flows to finance economic growth and sustainable development. Business and Economic Research, 1(1), 1-20.
- Dollar, D., & Kraay, A. (2000). Growth is Good for the Poor. Development Research Group. Washington, D.C.: World Bank Group.
- Ejemeyovwi, J. O., Osabuohien, E. S., & Osabohien, R. (2018). ICT investments, human capital development and institutions in ECOWAS. International Journal of Economics and Business Research, 15(4), 463-474.
- Falk, M. (2016). A gravity model of foreign direct investment in the hospitality industry. Tourism Management, 55, 225-237.
- Inekwe, J. (2013). FDI, employment and economic growth in Nigeria. African Development Review, 25(4), 421-433.
- Jibir, A., & Abdu, M. (2017, January). Foreign Direct Investment – Growth Nexus: The Case of Nigeria. European Scientific Journal, 13(1), 304-318.
- Jude, C., & Silaghi, M. I. P. (2016). Employment effects of foreign direct investment: New evidence from Central and Eastern European countries. International Economics, 145, 32-49.
- Massoud, N. (2008, March). Assessing the Employment Effect of FDI Inflows to Egypt: Does the Mode of Entry Matter? In International Conference on the Unemployment Crisis in the Arab Countries (pp. 17-18).
- Matthew, H. O., & Johson, A. (2014). An Investigation of the Impact of Foreign Direct Investment on Economic Growth in Nigeria: A Rigorous Approach. Journal of Poverty, Investment and Development, 3, 42-54.
- Matthew, O., Osabohien, R., Urhie, E., Ewetan, O., Adediran, O., Oduntan, E., & Olopade, C. (2019). Agriculture as a stimulant for Sustainable Development in ECOWAS. Sustainability: The Journal of Record, 12(4), 215-225.
- Matthew, O. A., Ede, U. C., Osabohien, R., Ejemeyovwi, J., Fasina, F. F., & Akinkeplumi, D. (2018). Electricity Consumption and Human Capital Development: Implications for Economic Growth in Nigeria. International Journal of Energy Economics and Policy, 8(6), 8-15.
- Nayyrazeb. (2014). FDI and Unemployment Reduction in Pakistan. College of Economics and Business Administration, Chongqing University, Chongqing, 400030, 10-17.
- Okunlola, F. A., Osuma, G. S., & Ehimare, A. (2019). Has Nigerian agricultural output spurred economic growth: the financing gap model using stepwise regression. Investment Management and Financial Innovations, 16(3), 157-166.
- Olusanya, S. O. (2013). Impact of FDI Inflow on Economic Growth in a Pre and Post Deregulated Nigeria Economy. A Granger Causality Test (1970–2010). European Scientific Journal, ESJ, 9(25).
- Onimisi, B. T. (2014). Foreign Direct Investments and Employment Generation Nexus in Nigeria. Journal of Educational and Social Research, 4(5), 119-128.
- Osabohien, R., Matthew, O., Gershon, O., Ogunbiyi, T., & Nwosu, E. (2019). Agriculture Development, Employment Generation and Poverty Reduction in West Africa. The Open Agriculture Journal, 13, 82-89.
- Quazi, R. (2007). Economic freedom and foreign direct investment in East Asia. Journal of the Asia Pacific Economy, 12(3), 329-344.
- Shaar, S. M., Hussain, E. N., & Halim, S. M. (2012). Impact of FDI on the unemployment rate and economic growth in Malaysia. Journal of Applied Science Research, 8(9), 4900-4906.
- Smith, S. (1997). Restrictive policy towards Multi-nationals: Argentina and Korea. Case studies in Economic Development, 2, 178-189.
- Sy, A., & Rakotondrazaka (2015). Private capital flows, official development assistance, and remittances to Africa: Who gets what? Brookings Institution, Washington, DC.
- Ugochukwu, U. S., Okorie, O. A., & Onoh, J. O. (2013). The impact of foreign direct investment on the Nigerian economy. European Journal of Business and Management, 5(2), 25-33.
- World Bank. (1996). World Debt Tables: External Finance for Developing Countries, Vol. 1 (Analysis and Summary Tables). Washington D.C.: The World Bank.
- Young, S., Hood, N., & Peters, E. (1994). Multinational Enterprises and Regional economic development. Regional Studies, 28(7), 657-679.
-
Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam ,
Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 11925 Downloads: 5695 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
-
Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 9154 Downloads: 5494 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
-
Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 7883 Downloads: 1376 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
