The Effect of Foreign Direct Investment on the Nigerian Manufacturing Sector

Opaluwa David, Ameh. A. Abu, Alabi J. O., Abdul Mohammed

Abstract


This study examined the effect of Foreign Direct Investment (FDI) on the Nigerian manufacturing sector spanning 1975 – 2008. Nigeria has embarked on several policy measures aimed at enhancing the manufacturing sector’s productivity coupled with the inflow of FDI to the country. The controversy is that the policy makers are not convinced that the potential benefits of FDI could be fully realized. The methodology adopted for the study is the Vector Auto Regression (VAR), co-integration and error correction techniques to establish the relationship between FDI and the growth of manufacturing sector. The findings from the study show that FDI has a negative effect on the manufacturing productivity and is statistically significant. Arising from the findings, it is recommended that government should create an enabling environment for foreign investment and the monitoring of FDI benefits, with particular focus of NEPAD and NEEDS through the instrumentality of the MDGs; thereby mustering the capacity for sustainable growth in the manufacturing sector.

Key words: FDI; Manufacturing sector; Productivity; Growth, Policy


Keywords


FDI; Manufacturing sector; Productivity; Growth, Policy

Full Text:

PDF


DOI: http://dx.doi.org/10.3968%2Fj.ibm.1923842820120402.1075

Refbacks

  • There are currently no refbacks.


Reminder

How to do online submission to another Journal?

If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; ibm@cscanada.net; ibm@cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada

Telephone: 1-514-558 6138
Http://www.cscanada.net
Http://www.cscanada.org
E-mail:caooc@hotmail.com