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Rivers State University, Port Harcourt.
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| Title: | International Capital Inflows And Human Development Index In Nigeria. |
| Author(s): | MOMODU A. A 1, CHUKWU S. N. & APAINGOLO E. G |
| Abstract: | A fundamental economic objective of Nigeria since independence is to achieve an effective development of the economy. As a result, successive governments had introduced various growth-oriented policies and programmes to ensure a developed economy. These policies and programmes revolve around inflation control, gross domestic product (GDP) growth, poverty reduction, trade, technological advancement, innovation amongst others. However, the said policies and programs over the years, have not brought about a substantial positive shift in the performance of the Nigerian economy. Besides the afore-mentioned macroeconomic indicators, effective management and utilization of international capital could also bring about effective performance of the economy. This study, therefore, investigates the relationship between international capital flows and human development index in Nigeria. The study employed time series annual data on GDP Per Capita as proxy for economic performance, while foreign direct investment, foreign portfolio investment, foreign remittances, foreign loans and foreign aids were employed as proxies for international capital flows, controlling for exchange rate and economic openness for the period of 1981 – 2023. The data were analyzed applying the Auto Regressive Distributive Lag (ARDL) model. Findings from the estimated model revealed that foreign direct investment (FDI) has a positive and substantial impact on economic performance in the short and long run respectively. Foreign portfolio investment also has a positive and substantial relationship with economic performance in the short run but conversely, showed a negative but insubstantial impact in the long run. Foreign remittances showed an insubstantial impact on economic performance in both short and the long run. Furthermore, foreign loans appeared to have a negative impact on economic performance in Nigeria in the short run and in like manner, the result showed that foreign aids have a negative and substantial impact on economic performance in the short run and as well in the long run. |
| Keywords: | gross domestic product per capita, foreign portfolio investment, foreign direct investmen |
| Journal: | Journal of World Economics and Financial Report Vol 2 No 1 |
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