AuthorsAri, Mayor N.
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AbstractEndowed with enormous natural resources but with a volatile economy, this study seeks to conduct an empirical analysis investigating the determinants and impact of inward oil and gas FDI on Nigeria’s economic growth and export performance. The study dataset covers a period of 17 years from 2001 to 2017. The country-level dataset was analysed in three separate models, which include, the country as a whole, OECD group and non-OECD group using dynamic panel data analysis techniques proposed by Blundell and Bond (1998) known in methodology literature as sys-GMM (system Generalized-Method-of-Moment). The study’s empirical evidence provides statistical support that inward oil and gas FDI in Nigeria is determined by market-seeking (proxied by GDP per capita), resource-seeking (proxied by fuel export) and efficiency-seeking (proxied by labour force). As a whole, it is seen that OECD countries’ FDI is more attracted by market-seeking and efficiency-seeking determinants, while, non-OECD countries are more attracted by resource-seeking factors. The study also found that inward oil and gas FDI in Nigeria has a significant positive effect on economic growth (proxied by GDP per capita). However, the study shows that OECD countries oil and gas FDI impact on Nigeria’s economic growth is higher compared to non-OECD countries oil and gas FDI. As regards export performance, the empirical results showed that inward oil and gas FDI in Nigeria has a significant positive effect on export performance in Nigeria (proxied by oil and gas exports). Also, from the empirical results, it is observed that the impact of non-OECD countries’ oil and gas FDI is higher compared to OECD countries oil and gas FDI impact on Nigeria’s foreign export. The empirical results corroborate the complementarity hypothesis of FDI and trade nexus by providing empirical evidence using oil and gas FDI in Nigeria. The main theoretical contributions of this study stem from the empirical evidence on inward oil and gas FDI examining the heterogeneity of the investing MNEs and, showing how this heterogeneity of investing MNEs impact on Nigeria’s economic growth and export performance. The study also provides valid evidence for FDI promotion agencies in Nigeria on how best to harness the benefits of inward oil and gas FDI in a volatile economy for greater economic and export performance.
PublisherUniversity of Wolverhampton
TypeThesis or dissertation
DescriptionA thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the degree of Doctor of Philosophy.
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