This paper critically examined the relationship between FDI, non-oil exports and economic growth in Nigeria using granger causality approach. The study utilized data from CBN Statistical Bulletin and UNCTAD investment report from 1980-2016. Consequently, various diagnostic tests such as unit roots, co-integration and Pairwise Granger Causality Tests were estimated. The results of the finding show that unidirectional causality runs from FDI to economic growth as well as non-oil exports. Hence, the study concludes that FDI has potential to propel the expansion of non-oil exports in particular and economic growth in general in Nigeria. Therefore, it is recommended in this paper that all hands must be on deck by the policy makers to create friendly economic policies and business environment that will boost further attraction of FDI into non-oil sector of the Nigerian economy.
Aderemi Timothy Ayomitunde, Aberu Felix (2018); Foreign Direct Investment, Non-Oil Exports and Economic Growth in Nigeria: Granger Causality Approach; International Journal of Scientific and Research Publications (IJSRP)
8(9) (ISSN: 2250-3153), DOI: http://dx.doi.org/10.29322/IJSRP.8.9.2018.p8186