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Research Article

SJACR. 2022; 3(1): 36-51


IMPACTS OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH OF SOME SELECTED WEST AFRICAN COUNTRIES

Babayemi, A. W., Onwuka, G. I., Haliru, I. W., Ladan, S and Abubakar, D..




Abstract

This research investigated the impacts of Foreign Direct Investment (FDI) on economic growth in five selected West African countries: Benin, Cote d’ivoire, Ghana, Niger, and Nigeria. Data were collected from the World Bank databank, precisely World Development Indicator (WDI) database. Seemingly Unrelated Regression Equation (SURE) was used as a statistical technique to achieve the set aim. The results showed that the FDI positively and significantly impacted Benin, Ghana, and Niger. For every 1% increment in FDI at a previous lag of one in Benin, there tends to be a 3.73% increment in economic growth. More so in Ghana, for every 1% increment in FDI at a previous lag of two, there tends to be 9.44% in economic growth. At the same time, Niger showed a 1-1 ratio of positive impact. However, in Cote d’ivoire and Nigeria, the FDI was not vibrant enough to stir the two countries' economic growth as none of the parameters showed significant contributions.

Key words: FDI; SURE; GDP, WDI, Economic, Growth






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