This paper attempt to empirically investigate the behavioural effect of the multinational operations and its impact on the performance of the Nigeria economy spanning from post SAP era 1986 to 2014 using secondary data sourced from the CBN statistical bulletin. The result of the OLS shows that foreign direct investment does not significantly stimulate nor contribute to the growth of the Nigeria economy in the short run judging by 5% level of significant. Mine while, MCP and MLTLAT are positive and significantly indicators to the growth of the Nigeria economy in the short run. The result of the stationary test reveals that all the variable used in the process of research became stationary after first differencing in the order of 1(1) while we observe long run association between all the variable used in this research work as reveal by the output of the Johansson co-integration test. The output of the various diagnostic test shows that all the variable are normally distributed. The output of the granger causality test reveals that there exist a unidirectional nexus between foreign direct investment and the Nigeria economic growth with causality flowing from FDI to PCGDP. From this view, we can infer that the multinational operations (FDI) is significantly contributing to the development and growth of the Nigeria economic hence, FDI is supply leading in the long run based on the report of this study. Sequel to this, we advise that appropriate policy must be put in place so as to ensure more stability of the macro-economic variable which will serve as a prerequisite for the attraction of more multinationals.
Published in | International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 3) |
DOI | 10.11648/j.ijefm.20160403.17 |
Page(s) | 143-152 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Multinational Operations, Granger Causality, Economic Growth
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APA Style
Monogbe Tunde Gabriel. (2016). The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation). International Journal of Economics, Finance and Management Sciences, 4(3), 143-152. https://doi.org/10.11648/j.ijefm.20160403.17
ACS Style
Monogbe Tunde Gabriel. The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation). Int. J. Econ. Finance Manag. Sci. 2016, 4(3), 143-152. doi: 10.11648/j.ijefm.20160403.17
AMA Style
Monogbe Tunde Gabriel. The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation). Int J Econ Finance Manag Sci. 2016;4(3):143-152. doi: 10.11648/j.ijefm.20160403.17
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TY - JOUR T1 - The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation) AU - Monogbe Tunde Gabriel Y1 - 2016/05/26 PY - 2016 N1 - https://doi.org/10.11648/j.ijefm.20160403.17 DO - 10.11648/j.ijefm.20160403.17 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 143 EP - 152 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20160403.17 AB - This paper attempt to empirically investigate the behavioural effect of the multinational operations and its impact on the performance of the Nigeria economy spanning from post SAP era 1986 to 2014 using secondary data sourced from the CBN statistical bulletin. The result of the OLS shows that foreign direct investment does not significantly stimulate nor contribute to the growth of the Nigeria economy in the short run judging by 5% level of significant. Mine while, MCP and MLTLAT are positive and significantly indicators to the growth of the Nigeria economy in the short run. The result of the stationary test reveals that all the variable used in the process of research became stationary after first differencing in the order of 1(1) while we observe long run association between all the variable used in this research work as reveal by the output of the Johansson co-integration test. The output of the various diagnostic test shows that all the variable are normally distributed. The output of the granger causality test reveals that there exist a unidirectional nexus between foreign direct investment and the Nigeria economic growth with causality flowing from FDI to PCGDP. From this view, we can infer that the multinational operations (FDI) is significantly contributing to the development and growth of the Nigeria economic hence, FDI is supply leading in the long run based on the report of this study. Sequel to this, we advise that appropriate policy must be put in place so as to ensure more stability of the macro-economic variable which will serve as a prerequisite for the attraction of more multinationals. VL - 4 IS - 3 ER -