The impact of FDI on Nigeria’s export performance: a sectoral analysis
Abstract
Purpose
The purpose of this paper is to examine the foreign direct investment (FDI)–exports relationship in Nigeria using disaggregated FDI and export data.
Design/methodology/approach
This paper applies the autoregressive distributed lag cointegration approach in examining the long-run relationship between FDI and exports.
Findings
The results suggest that aggregate FDI has a positive and statistically significant long-run impact on total exports. Once exports are disaggregated into oil and non-oil exports, the positive, cointegrating relationship holds only for oil exports. When disaggregated by sector, primary sector and manufacturing sector FDI have a positive and significant long-run relationship with both total exports and oil exports but service sector FDI does not appear to have any significant influence on Nigerian exports.
Originality/value
This is the first paper that employs both sectoral FDI and disaggregated export data to examine the FDI–exports nexus in Nigeria.
Keywords
Acknowledgements
The authors of this paper have not made their research data set openly available. Any enquiries regarding the data set can be directed to the corresponding author.
Citation
Okechukwu, O.G., De Vita, G. and Luo, Y. (2018), "The impact of FDI on Nigeria’s export performance: a sectoral analysis", Journal of Economic Studies, Vol. 45 No. 5, pp. 1088-1103. https://doi.org/10.1108/JES-11-2017-0317
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited