Dynamics of Remittances, Domestic Investment, Foreign Direct Investment Trade Openness and Economic Growth: Evidence from Nigeria

Abstract

This study investigates the dynamics of remittances, domestic investment, Foreign direct investment, trade openness and economic growth: Evidence from Nigeria covering the period of 42 years (1980-2023). The study adopts expo-factor research design. It is choosing to generalize the findings of this study. The method of Data collection are from world bank, World development indicators online data base. The study employed analytical techniques (methods of data analysis) in order to capture the objectives for which the study is poised to achieve. These included vectors autoregressive (VAR), long-run cointegrating parameter estimates using dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) Result shows that on effect of REM, DIV, FDI OPN and economic growth in Nigeria revealed that, with the exception of OPN, all other independent variables have negative effect on economic growth in Nigeria. Implication to the findings is that REM, and DIV are not growth enhancing in Nigeria. From the long-run cointegrating parameter estimates of FMOLS and DOLS, results opined that an increase in REM, DIV, FDI and OPN increases economic growth of Nigeria. Result from the Granger causality test shows uni- directional causality amongst REM, OPN, and GDP in Nigeria. Therefore, the study recommends that, government should pursue all the policies, programs and strategies that will attract more gross domestic product GDP, remittances (REM), trade openness (OPN) and domestic investment (DIV) in to the economy, this will contribute to attain rapid economic growth in Nigeria.