Authors: Musibau Adetunji Babatunde
Addresses: Department of Economics, University of Ibadan, Ibadan, Nigeria
Abstract: This study examined the relationship between inward foreign direct investment (FDI) and export performance in Nigeria at the aggregate and disaggregated level between 1980 and 2014. It employed time series analysis that incorporated the estimation of long run estimation for the specified export equations. Empirical analysis revealed a positive and significant impact on total export and exports in manufacturing, oil and services sectors. However, FDI does not have any significant relationship with agricultural exports. This underscores the need to eliminate discriminatory policy towards foreign investors and provide incentives and facilities to enhance export especially in the manufacturing and agricultural sector. Nevertheless, real exchange rate, terms of trade and the productive capacity are other factors that influence export performance in Nigeria.
Keywords: foreign direct investment; FDI; exports; exchange rates; cointegration; Nigeria; export performance; incentives; trade terms; productive capacity; discriminatory policy.
International Journal of Sustainable Economy, 2017 Vol.9 No.2, pp.142 - 158
Received: 02 Jun 2016
Accepted: 24 Aug 2016
Published online: 08 Mar 2017 *