Effects of Nıgerıan Foreıgn Direct Investment on Economıc Growth : An Empırıcal Investıgatıon Usıng the Bounds Test for Co-Integratıon and Causalıty Tests
Vol 19 No 1 (2019), Articles
Vol 19 No 1 (2019)

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

Articles
Published June 3, 2019
Faruku, A.Z.
Department of Statistics, Waziri Umaru Federal Polytechnic, Birnin Kebbi, Kebbi State
Harun, B.R.
Department of Mathematics and Statistics, University of Maidguuri Borno State.
Yusuf B.
Department of Mathematics and Statistics, Federal University Dutsimma, Kastina State
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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
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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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