Impact of Foreign Direct Investment on sectoral performance in the Nigeria economy, using maritime sector as a case of study

ABSTRACT

The study seeks to empirically analyze the impact of Foreign Direct Investment on sectoral performance in the Nigeria economy, using maritime sector as a case of study. The data for the research study was extracted from CBN statistically bulletin volume 25, 2018 edition. The methodology is ordinary least square were foreign direct investment was regressed on Foreign Direct Investment, Interest rate, Exchange rate, on Nominal Gross Domestic Product. Some econometrics tests were conducted such as the unit Root, Contegration, Vector Error Mechanism and Granger Causality test. The unit root result shows that none of the variables were stationary at level, but at first differencing them all became stationary. The contegration result shows that there is long-run relationship among the variables. The Vector Error Mechanism model shows that maritime sectoral performance had an impact on Nigerian economy. It is on this note that the researcher recommends amongst others that: The government should initiate policies that will promote the long- run growth of the maritime sector and the economy at large, There is need for government to be formulating investment policies that will be favorable to local investors in order to complement the inflow of investment from abroad as high interest rate will hinder the growth of investment, A stable political environment was found to be fundamental in attracting foreign investment to an economy, It should also set machinery in motion to improve the quality of the labour force through improved educational system, and qualitative and continuous manpower training.