Revista Română de Statistică (2010-03-01)

ON THE CAUSAL LINKS BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN NIGERIA, 1970-2008: AN APPLICATION OF GRANGER CAUSLITY AND CO-INTEGRATION TECHNIQUES

  • Abdullahi USMAN,
  • Obida Wafure GOBNA,
  • Abu NURUDEEN

Journal volume & issue
Vol. 58, no. 03
pp. 76 – 85

Abstract

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This paper examines the causal links between foreign direct investment and economic growth in Nigeria during the period 1970-2008. The authors employed the Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The Johansen co-integration statistic indicates that the variables are co-integrated, and the granger causality statistic reveals a unidirectional causality running from foreign direct investment to economic growth.

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