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Saudi Journal of Business and Management Studies (SJBMS)
Volume-4 | Issue-01 | 56-61
Original Research Article
Foreign Direct Investment and Performance of Manufacturing Sector in Nigeria: any Link to Agricultural Production?
Marius Ikpe
Published : Jan. 25, 2019
DOI : 10.36348/sjbms.2019.v04i01.008
Abstract
There has been lack of consensus regarding growth effect of Foreign Direct Investment (FDI) on host communities. For this reason, current research efforts now focus investigation on the impact of FDI on the manufacturing sector, being the sector with potential for harnessing the benefits of foreign investment. As a result, this study examined the impact of FDI on manufacturing sector performance, and subsequently traced the effect of this on agricultural production. Solow augmented growth model served as base for analysis while Autoregressive Distributed lag (ARDL) model was utilized in estimation. Findings show no support for any significant relationship between FDI and manufacturing sector performance, but a strong positive correlation exists between manufacturing output and agricultural production. On the bases of this, the study concludes with a research agenda; future investigation on the subject should focus on links among domestic firms, manufacturing sector performance and agricultural production
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