Journal of Asia-Pacific Studies 2025 KCI Impact Factor : 0.63
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pISSN : 1225-8539 / eISSN : 2671-5171
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Foreign Direct Investment (FDI) and its Impact on Sustainable Industrial Development in Nigeria
- Journal of Asia-Pacific Studies
- Abbr : JAPS
- 2025, 32(1), pp.123~156
- DOI : 10.18107/japs.2025.32.1.005
- Publisher : Institute of Global Affairs
- Research Area : Social Science > Social Science in general
- Received : February 26, 2025
- Accepted : March 14, 2025
- Published : March 30, 2025
Anthony Isichei Monye 1, Jun Yeup Kim 2
1나이지리아 기획예산부 거시경제국
2경희대학교
Accredited
ABSTRACT
The Study examined the impact of Foreign Direct Investment (FDI) on the Nigerian manufacturing sector over the period of 1990 to 2016. Secondary data were sourced from World Development Indicators for Nigeria, World Bank, Central Bank of Nigeria (CBN), and United Nations Conference for Trade and Development (UNCTAD). The Dynamic and Fully Modified Ordinary Least Squares (DOLS and FMOLS) estimation technique employed for the analysis. The empirical results within the period under review, showed that on one hand foreign direct investment (FDI), infrastructure development (INFRAD) and real interest rate (RINTR) is positively related to manufacturing sector output growth. Degree of Trade Openness (DTOP) and Real Exchange Rate (REXCR) on the other hand, was found to be and Real Exchange Rate (REXCR) on the other hand, was found to be inversely related to the manufacturing sector output growth and statistically significant in both the DOLS and FMOLS framework. Since the empirical evidence revealed that FDI is positively related manufacturing sector output growth and further clear the ambiguity of whether FDI promotes manufacturing sector output growth.
We therefore recommends that the Nigeria government need to design and implement policies not only attract better technological resources induced FDI but also to promote innovative and entrepreneurial drive among the technological active firms in Nigeria manufacturing sector. The pursuit of outward-looking strategies and policies should be strengthened depending on the comparative advantages in the manufacturing sector and as a cushion against vulnerability impacts of the exports and imports market.
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