The impact of FDI on Nigeria’s export performance: a sectoral analysis

Abstract

Purpose

The purpose of this paper is to examine the foreign direct investment (FDI)–exports relationship in Nigeria using disaggregated FDI and export data.

Design/methodology/approach

This paper applies the autoregressive distributed lag cointegration approach in examining the long-run relationship between FDI and exports.

Findings

The results suggest that aggregate FDI has a positive and statistically significant long-run impact on total exports. Once exports are disaggregated into oil and non-oil exports, the positive, cointegrating relationship holds only for oil exports. When disaggregated by sector, primary sector and manufacturing sector FDI have a positive and significant long-run relationship with both total exports and oil exports but service sector FDI does not appear to have any significant influence on Nigerian exports.

Originality/value

This is the first paper that employs both sectoral FDI and disaggregated export data to examine the FDI–exports nexus in Nigeria.

Citation

Okechukwu, O.G., De Vita, G. and Luo, Y. (2018), "The impact of FDI on Nigeria’s export performance: a sectoral analysis", Journal of Economic Studies, Vol. 45 No. 5, pp. 1088-1103. https://doi.org/10.1108/JES-11-2017-0317