Foreign Capital Flows And Economic Growth In Nigeria

International Journal of Humanities and Social Science

© 2021 by SSRG - IJHSS Journal

Volume 8 Issue 6

Year of Publication : 2021

Authors : Okolie Augustine Oke, David Oghenekevwe Ruth

10.14445/23942703/IJHSS-V8I6P105

How to Cite?

Okolie Augustine Oke, David Oghenekevwe Ruth, "Foreign Capital Flows And Economic Growth In Nigeria," SSRG International Journal of Humanities and Social Science, vol. 8,  no. 6, pp. 39-50, 2021. Crossref, https://doi.org/10.14445/23942703/IJHSS-V8I6P105

Abstract:

This study examined the effect of foreign capital flow on economic growth in Nigeria from 1999 to 2020. The independent variable is foreign capital flows measured by foreign debt inflows and foreign remittance inflows), foreign medical services and education and foreign direct investment outflows, while the dependent variable is economic growth measured by real gross domestic product per capita growth rate. The study collected data from CBN Statistical Bulletin, World Bank Data Bank, and the International Monetary Fund (2020). The study adopted the Ordinary Least Square regression techniques through the instrumentality of Econometric Views version 9.0. Specifically, the study reported that both foreign debt inflows and foreign medical services and education exerted a significant negative effect on economic growth. Meanwhile, foreign remittance inflows exerted a significant positive effect on economic growth in Nigeria. Meanwhile, foreign direct investment outflows though exerted a positive effect on economic growth but were not statistically significant. Hence, the study concludes that foreign remittance inflows are instrumental to economic growth, especially if the foreign debt is well utilized and that foreign direct investment outflows and expenses on foreign Education and Health are well accounted for. Thus, the study recommends that the Nigerian government must ensure that borrowed funds are used for the purpose for which it was borrowed. Lastly, the study advocates that the Nigerian government should track all forms of illegalities arising from foreign remittance inflows and expenses on Foreign Education and Health.

Keywords:

Foreign Capital Flows, Economic Growth, Foreign Direct Investment, External Debt, Foreign Remittances.

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