ABSTRACT
The purposeofthisstudyistoexaminetheeffectofsectoralForeignDirectInvestment oneconomicgrowthinNigeriamakinguseoftimeseriesdatafortheperiod1981-2018. An Auto-regressive Distributed Lag (ARDL) technique (with emphasis on short run estimates)isusedtoexaminetherelationshipforseriesthatareI(0)andI(1).Thestudy considers five FDI sectors which include: Telecommunication infrastructures, oil, Agriculture,Manufacturing,Services andotherinfrastructuressectorsasitsvariables representingsectoralforeigndirectinvestmentwhileGrossDomesticProduct(GDP)is employedasaproxyforeconomicgrowth.
ThestudyobservesnolongrunrelationshipbetweensectoralFDIandeconomicgrowth. Hence,shortrunestimationwithoutaccountingforadjustmentmechanismisestimated. The results shows that telecommunication infrastructures FDI, Services FDI and other infrastructuresFDIaresignificantto economic growth. However,only Telecommunication infrastructures FDI spurs economic growth while Services FDI and otherinfrastructuresFDIdrageconomicgrowthinNigeria.
Conclusively,thisstudyrecommendsthatgovernmentshouldensurestable macroeconomicpoliciesasastabilizationtooltoprompttheattractionofmoreFDIinto Nigeriaanddependencyonforeigndirectinvestmentshouldremainlimited.
