Foreign direct investment and inclusive growth: the role of the financial sector development in Nigeria, 1981-2020

• Emeka NKORO ^[1] ; Aham Kelvin UKO ^[2]
  1. [1] University of Port Harcourt

     University of Port Harcourt

     Nigeria

     
  2. [2] Ministry of Finance, Abia State
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 23, Nº. 1, 2023, págs. 77-100
• Idioma: inglés
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• Resumen

  • This study examined the role of the domestic financial sector development in the relationship between foreign direct investment (FDI) inflows and inclusive growth in Nigeria over the period 1981-2020 using annual time series. Empirically, the result revealed that the FDI exerted a significant positive effect on inclusive growth when the domestic financial sector has reached a certain minimum level of development. The result further showed that the FDI alone presents a significant negative effect on inclusive growth. This is evidence that the domestic financial sector development is a pre-condition for FDI to effectively promote inclusive growth in Nigeria.