ABSTRACT

The purposeofthisstudyistoexaminetheeffectofsectoralForeignDirectInvestment oneconomicgrowthinNigeriamakinguseoftimeseriesdatafortheperiod1981-2018. An Auto-regressive Distributed Lag (ARDL) technique (with emphasis on short run estimates)isusedtoexaminetherelationshipforseriesthatareI(0)andI(1).Thestudy considers  five  FDI  sectors  which include:  Telecommunication  infrastructures,  oil, Agriculture,Manufacturing,Services  andotherinfrastructuressectorsasitsvariables representingsectoralforeigndirectinvestmentwhileGrossDomesticProduct(GDP)is employedasaproxyforeconomicgrowth.

ThestudyobservesnolongrunrelationshipbetweensectoralFDIandeconomicgrowth. Hence,shortrunestimationwithoutaccountingforadjustmentmechanismisestimated. The results shows that telecommunication infrastructures FDI, Services FDI and other infrastructuresFDIaresignificantto economic growth.  However,only Telecommunication infrastructures FDI spurs economic growth while Services FDI and otherinfrastructuresFDIdrageconomicgrowthinNigeria.

Conclusively,thisstudyrecommendsthatgovernmentshouldensurestable macroeconomicpoliciesasastabilizationtooltoprompttheattractionofmoreFDIinto Nigeriaanddependencyonforeigndirectinvestmentshouldremainlimited.