The Relationship between Import, Export, Domestic Investment and Economic Growth in Nigeria

• Published in: EuroEconomica Vol. 37; no. 3; pp. 149 - 156
• Main Authors: Adekunle, O. Ahmed, Chuks, Ebere, Kamaldeen, Fakunmoju S, Bolaji, Yunus A
• Format: Journal Article
• Language: English
• Published: Galati Danubius University Press 2018; Editura Universitară Danubius; Universitatea Danubius Galati
• Subjects: Causality; Central banks; Economic development; Economic growth; Economic models; Economic reform; Exports; Imports; Negativity effect; Time series; Variables; Nigeria; Domestic investment; Export; Import; Economic growth
• ISSN: 1582-8859

This paper examines the relationship between imports, exports, domestic investment and economic growth in Nigeria. The study make used of annual time series data which span from 1981 to 2016, which is sourced from World Development Indicator (WDI) and Central Bank of Nigeria Statistical Bulletin. The study employed ARDL Model and VEC Granger Causality Test to explore the relationship among the variables. The empirical results show that there is long run relationship among the variables. In the short run, empirical results show that only imports have negative effect on economic growth in Nigeria. The VEC Granger Causality Test indicates that there is relationship among the variables. This negativity effect of imports on economic growth in Nigeria requires stringent economic reforms.