THE IMPACT OF FOREIGN CAPITAL ON NIGERIA'S ECONOMIC GROWTH 1970 -1992
Keywords:
Foreign capital, economic growth, foreign aid, foreign investment, capital inflow, financing, NigeriaSynopsis
This study focuses on both theoretical and empirical
evidences of the impact of foreign capital on th; economic
growth of Nigeria. A simultaneous equation model
consisting of growth rate equation and savings equation
was estimated through the econometric method of Indirect
Least Square.
The main findings of this study is that non-commercial
flows has made a more significant positive contribution
to Nigeria's economic growth while commercial flow
component of foreign capital have had a depressing effect
on the economic growth between 1970 and 1992. The study
further reveals that export performance, rather than
any component of foreign capital inflows is the largest
contributor to the nation's economic growth.
The policy implication arising from this study is
that commercial component of the inflows should be well
planned and adequately monitored. This study concludes
that it is the adequate policy mix rather than any
particular components of foreign capital inflows that
leads mostly to positive economic growth.
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References
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Published
February 27, 1994
Series
Copyright (c) 1994 CODESRIA Books Publication System
