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Rivers State University, Port Harcourt.
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| Title: | Impact of External Capital Flows on Economic Development in Nigeria |
| Author(s): | Akunyili U. F, Ewubare D. B, Amadi S. N. & Amadi C. R. |
| Abstract: | This study investigated the impact of external capital flows on economic development in Nigeria. The annual times series data used in the study were obtained from National Bureau of Statistics (NBS), World Development indicators of World Bank, and DAC-OECD Statistics. These observations covered the period of 1980 to 2022. Gross domestic product per capita (PKG) and unemployment rate (UNP) were used to proxy economic development. On the other hand, inward external capital flows (ORT), outward external capital flows (ORT), official development assistance (ODA), and technical cooperation grant(TCG) were used to proxy external capital flows. The models were estimated using the Autoregressive distributive lag (ARDL) method. The study found that in the short run, IRT, ORT, and TCG significantly influence PKG with IRT and TCG alone having significant positive impact on the latter. In the long run, IRT maintained its position of significant positive impact on PKG, however, all other regressors did not exert any significant influence on PKG in the long run. Similarly, IRT significantly influenced UNP both in the short run and in the long run but all other regressors except in the short run had no long run effect on UNP. Following these results, the study recommended that The Nigerian government should promote policies that will attract more technical cooperation grants as it has been found to boost gross domestic product per capita in the country. |
| Keywords: | External capital, Economic development, Unemployment, GDP per capita |
| Journal: | Journal of Economic Research and Development Studies Vol 1 No 1 |
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