Effects of Nıgerıan Foreıgn Direct Investment on Economıc Growth : An Empırıcal Investıgatıon Usıng the Bounds Test for Co-Integratıon and Causalıty Tests
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Keywords

Bound Test
GDP
Co Integration
ARDI
Causality

How to Cite

Faruku, A.Z., Harun, B.R., & Yusuf B. (2019). Effects of Nıgerıan Foreıgn Direct Investment on Economıc Growth : An Empırıcal Investıgatıon Usıng the Bounds Test for Co-Integratıon and Causalıty Tests. Research Journal of Science, 19(1), 83 - 92. Retrieved from http://journals.unimaid.edu.ng/index.php/rjs/article/view/68

Abstract

This paper empirically examined the level relationship and the direction of causality between Growth Domestic Product, Foreign Direct Investment (FDI) and Inflation rate in Nigeria using auto-regressive distributed lag (ARDL) modeling approach and bounds test for co-integration and Granger causality tests. Results suggest that both variables are in long-run equilibrium relationship when GDP is dependent variable under the ARDL. Also the investigation shows that there is only one granger causality relationship which is a uni direction between inflation and foreingn direct investment this means that inflation causes foreingn dırect ınvestment ın Nigeria.Finally the investigation found a one co integration relation using Trace Test and Eigen value approach.

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References

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