Authors : Olatunji Mariam Adeola; Olawunmi Samson, Dare

Volume/Issue : Volume 8 - 2023, Issue 9 - September

Google Scholar : https://bit.ly/3TmGbDi

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DOI : https://doi.org/10.5281/zenodo.8401496

Abstract : This study investigates the Macroeconomic Determinants of Economic Growth in Nigeria during the period from 1990 to 2018. The primary objective of this research is to assess how macroeconomic variables impact Nigeria's economic growth. The specific goals include analyzing the patterns of capital, economic openness, foreign direct investment, gross domestic product (GDP), and interest rates concerning economic growth in Nigeria. Additionally, this study seeks to examine the long-term relationships among these economic growth variables. Data for this research were obtained from the World Development Indicators, as well as the annual reports and statements of accounts from the Central Bank of Nigeria spanning the years 1990 to 2018. The variables considered include foreign direct investment, economic openness, capital, GDP, and interest rates. The study employs quantitative data analysis tools, adhering to standard econometric principles. Estimation techniques applied include the Philip Perron unit root test, auto-regressive distributed lag analysis, and Error Correction Model (ECM). The findings indicate that there is no long-term relationship among the variables related to economic growth. Furthermore, all the variables exhibit a positive association with economic growth in Nigeria, with the exception of foreign direct investment. The results also suggest that capital has significantly contributed to economic growth in Nigeria. The study recommends a deliberate focus on increasing economic openness to foster a conducive environment for both foreign and domestic investments, given their substantial impact on economic growth.

Keywords : Macro Economic determinants, Interest rate, Foreign Direct Investment, Openness, Economic growth.