Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Financial Development, Foreign Direct Investment and Economic Growth in Nigeria
by M. O. Saibu, I. P. Nwosa and A. M. Agbeluyi

Abstract:
The study examined effects of financial development and foreign direct investment on economic growth in Nigeria.. The study modified the standard endogenous model to incorporate foreign direct investment and financial development as the determinant of growth in the long run. Using time series data from 1970 to 2009, the study tested for the time series properties of the variable and adopted the Autoregressive Distributed Lag (ARDL) technique to estimate the model. The results showed that financial development and foreign direct investment had negative effects on economic growth in Nigeria. The result further showed that the effect of foreign direct investment differed significant when different measures of financial market are used. Specifically foreign direct investment was only significant when combined with stock market indices. The result also showed that financial market liquidity but not the size of the financial market that matter for economic growth in Nigeria

Keywords: financial development, foreign direct investment, economic growth, Nigerian economy

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