Please use this identifier to cite or link to this item:
https://hdl.handle.net/10419/321668 Authors:
Year of Publication:
2024
Citation:
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2426538 [Year:] 2024 [Pages:] 1-21
Publisher:
Taylor & Francis, Abingdon
Abstract:
This study examines trade openness, hydroelectric power production, and foreign direct investment (FDI) nexus on economic growth in Nigeria. Despite efforts toward trade liberalisation, Nigeria's growth remains constrained due to heavy reliance on oil and minerals exports. Furthermore, electricity production challenges exacerbate these issues, hindering intra-African trade, FDI inflows, and overall economic growth. The study explores how trade openness and insufficient electricity production affects economic growth in the long run. The annual data from 1988 to 2022, sourced from the National Bureau of Statistics, Nigeria, Our World in Data, and the World Bank Development Indicator (WDI) database was used. The econometric techniques employed are the autoregressive distributed lag (ARDL) to examine long-run and short-run dynamics, while the dynamic ordinary least squares (DOLS) is used as a robustness to address potential endogeneity and serial correlation concerns. The findings indicate that trade openness positively affects long run economic growth, as supported by DOLS estimates. However, hydroelectric power production and FDI had mixed effects on Nigeria's economic performance. The study recommends prioritising investments in electricity infrastructure to enhance trade competitiveness and attract FDI. Moreover, diversifying exports beyond oil and minerals is crucial for strengthen economic resilience and drive sustainable development in Nigeria. This study provides critical insights into sustainable economic development in Nigeria by examining key factors affecting its growth. Through an in-depth analysis of trade openness, hydroelectric power production, and foreign direct investment (FDI), the research highlights both the drivers and barriers within Nigeria's economic trajectory. Findings show that trade liberalisation, enhanced electricity infrastructure, and targeted FDI are essential for supporting long-term economic expansion. These insights align with Nigeria's goals of economic diversification and energy security. The implications of this study are substantial, offering policymakers guidance for strategies that promote both growth and inclusive development. By uncovering the interconnected effects of trade, energy, and investment policies, this work provides a framework for informed national and regional economic planning. The research has the potential to shape decisions on resource allocation, regulatory reforms, and investment priorities, positioning Nigeria towards sustainable industrialisation and resilient economic transformation.
Subjects:
FDI
Nigeria
economic growth
ARDL
DOLS
Trade openness
hydroelectric power production
Nigeria
economic growth
ARDL
DOLS
Trade openness
hydroelectric power production
JEL:
F14
F21
O55
Q42
F21
O55
Q42
Persistent Identifier of the first edition:
Document Type:
Article
Appears in Collections:
Files in This Item:
File
Description
Size
Format
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
