FOREIGN DIRECT INVESTMENT INFLOW AND MANUFACTURING CAPACITY IN NIGERIA

1984-2017

  • Victoria Ogochukwu Obi-Nwosu, PhD Nnamdi Azikiwe University, Awka
  • Kelechukwu Stanley Ogbonna, PhD Nnamdi Azikiwe University, Awka
  • Steve N Ibenta Nnamdi Azikiwe University, Awka
Keywords: Foreign Direct Investment, Inflation Rate, Exchange Rate, Manufacturing Capacity

Abstract

The study examined the role of foreign direct investment on manufacturing capacity in Nigeria.
Secondary data were sourced from Central Bank of Nigeria Statistical bulletin of various years
for foreign direct investment (FDI), exchange rate (EXR), inflation rate (INFR) and
manufacturing capacity (MC) for the period of 1984 to 2017 and were subjected to Augmented
Dickey Fuller Unit Root test, Johansen Co-integration and Multiple regression analysis (OLS)
Model. The study discovered that FDI and EXR were able to impact manufacturing capacity
significantly while INFR were unable to play significant role on manufacturing capacity in
Nigeria. There is also the presence of long run relationship between the variables of study
within the period. Thus, the study concludes that foreign direct investment plays significant role
on the manufacturing capacity in Nigeria. Hence, the study recommends improvement of the
investment climate for existing domestic and foreign investors through infrastructure
development, provision of services and changes in the regulatory framework by relaxing laws
on profit repatriation, improve security situation, address issues that threaten the unity of the
country, consider investment agenda of the economy above political interest or affiliation.

Author Biographies

Victoria Ogochukwu Obi-Nwosu, PhD, Nnamdi Azikiwe University, Awka

Department of Banking and Finance

Kelechukwu Stanley Ogbonna, PhD, Nnamdi Azikiwe University, Awka

Department of Banking and Finance

Steve N Ibenta, Nnamdi Azikiwe University, Awka

Department of Banking and Finance

Published
2019-08-26
How to Cite
Obi-Nwosu, V., Ogbonna, K., & Ibenta, S. (2019). FOREIGN DIRECT INVESTMENT INFLOW AND MANUFACTURING CAPACITY IN NIGERIA. ZIK JOURNAL OF MULTIDISCIPLINARY RESEARCH, 2(1). Retrieved from https://journals.aphriapub.com/index.php/ZJMR/article/view/949
Section
Articles