The Relatıonshıp Between Foreıgn Dırect Investment and Economıc Growth ın Nıgerıa: Usıng Var,Vecm and Granger Causalıty Tests
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Keywords

Foreign Direct Investment
GDP
VAR
VECM
Casuality

How to Cite

Faruku, A.Z., Harun, B.R., & Yusuf B. (2019). The Relatıonshıp Between Foreıgn Dırect Investment and Economıc Growth ın Nıgerıa: Usıng Var,Vecm and Granger Causalıty Tests. Research Journal of Science, 19(1), 60 - 71. Retrieved from http://journals.unimaid.edu.ng/index.php/rjs/article/view/67

Abstract

This research uses a Co-integration VAR model to study the contemporaneous long-run dynamics of the impact of Foreign Direct Investment (FDI) and Natural Gas Revenue (NGR) on Growth Domestic Products (GDP) in Nigeria. Secondary data for the period 1970 to 2014 was used for the study. The Unit Root Test suggests that all the variables are integrated of order 1. The VAR model was appropriately identified by using AIC information criteria and using Johansen Co-integrated test, the VECM model has exactly one co-integration relation. The study further investigates the causal relationship using the Granger causality analysis which indicates a uni-directional causality relationship between FDI and GDP, NGR and FDI while we observe a bi- directional relationship between NGR and GDP at 5% which is in line with other  studies

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