FOREIGN RESOURCES INFLOW AND ECONOMIC GROWTH IN NIGERIA
Resumo
The study assessed the impact of foreign resources on economic growth in Nigeria from 1986 to 2015. Secondary data were obtained from various issues of CBN statistical bulletin. Economic Growth (the dependent variable) was considered interms of real gross domestic product (RGDP); while foreign resources (independent variable) was considered in the form of foreign direct investment (FDI), foreign portfolio investment (FPI), and official direct assistance (ODA). These served as the major regressor with exchange rate (EXCR) as check variable. The techniques of analysis used were ADF test of stationarity, co-integration test for long-run relationship, and Error Correct Mechanism (ECM) analyse of relationship between the variables. The results show that the explanatory variables explained 93.7% of the variations in economic growth in Nigeria. F-statistic of 66.628 (F-table
= 2.84) showed statistical significance the model. The values of the coefficient of past (lag 1 and 2) of FDI and current value of FPI had significantly positively signed, while the first lag (lag 1) of ODA and current value of EXCR were significantly negatively related with economic growth. From these findings, foreign resource inflows is said to, on the whole, have significant impact on RGDP. In conclusion, the study submits that the flow of foreign resourcesis very important toeconomic growth (in terms of the growth in real gross domestic product) in Nigeria within the period of study. This means that, more efforts should be done to attract and ensure effective use of the resources.
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