Foreign Direct Investment, Electricity Power Supply and Economic Growth in Nigeria

Authors

  • Sherifatu O. Onayemi Covenant University Ota.
  • Philip A. Olomola Obafemi Awolowo University Ile-Ife.
  • Philip O. Alege Covenant University Ota.
  • Oluwakemi O. Onayemi Covenant University Ota.

Abstract

This study examined the stimulation of foreign direct investment (FDI) inflows through constant electricity power supply for economic growth in Nigeria, by engaging time series data sourced from the world development indicators (WDI) for the period 1986 -2017 and employed the Autoregressive distribution lag econometric approach to co-integration. The gross domestic product growth rate per capita was the proxy for economic growth and the dependent variable, while the independent variables include foreign direct investment, labour force participation rate, gross fixed capital formation and electricity power supply. The result from the study showed that, in the long-run, increased FDI inflows, gross fixed capital formation, electricity power supply, have the potency of increasing economic growth by 30 per cent, 20 per cent and 6 per cent, respectively. Therefore, based on the results obtained, the study recommended that there should be constant electricity power supply to keep pace with productivity for efficient economic growth in Nigeria.Keywords: Economic Growth, Electricity Power, Foreign Direct InvestmentJEL Classifications: O47, L94, H54DOI: https://doi.org/10.32479/ijeep.7774

Downloads

Download data is not yet available.

Downloads

Published

2020-08-10

How to Cite

Onayemi, S. O., Olomola, P. A., Alege, P. O., & Onayemi, O. O. (2020). Foreign Direct Investment, Electricity Power Supply and Economic Growth in Nigeria. International Journal of Energy Economics and Policy, 10(5), 243–247. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/7774

Issue

Vol. 10 No. 5 (2020)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.