Foreign direct investment and manufacturing export in Nigeria

Authors

Nasiru Musa Yauri, Usmanu Danfodiyo University, Sokoto, Nigeria

Abstract

The potential impact of Foreign Direct Investment (FDI) on recipient and investing economies is of considerable policy interest (Pain and Wakelin, 1997). Important to the theory of foreign investment in Nigeria is the question whether foreign investors coming to Nigeria are market-seeking or export-driven. This finding is relevant to economic managers in the design and implementation of appropriate macroeconomic policies to attract FDI. It is also relevant to investigate whether FDI contributes to the overall capacity of developing economies to export. This study investigates the contribution of FDI to manufacturing export in Nigeria. Using firm level data collected from 232 manufacturing firms in Nigeria, probit regression analysis revealed that FDI does not significantly contribute to manufacturing exports in Nigeria. This finding supports that of Soderbom and Teal (2002) and Nunnenkamp (2002) that FDI in developing countries like Nigeria are not export-driven but are attracted by certain economic fundamentals within the economy like market size and the availability of natural resources.

Keywords

Foreign direct investment, Manufacturing, Export, Nigeria

DOI

https://doi.org/10.54784/1990-6587.1181

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Yauri, N. (2011). Foreign direct investment and manufacturing export in Nigeria. Business Review, 6(1), 51-60. Retrieved from https://doi.org/10.54784/1990-6587.1181