The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation)

Monogbe Tunde Gabriel

doi:doi:10.11648/j.ijefm.20160403.17

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The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation)

Monogbe Tunde Gabriel

Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 3)

Received: 7 April 2016 Accepted: 16 April 2016 Published: 26 May 2016

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Abstract

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), 2024. Published by Science Publishing Group

Keywords

Multinational Operations, Granger Causality, Economic Growth

References

[1]	Adelegan, J. O. 2000, Foreign Direct Investment and Economic Growth in Nigeria: A seemingly unrelated model”. African Review of Money, Finance and Banking, Supplementary issue of “Savings and Development” 2000, 5 (25). Milan, Italy.
[2]	Adeolu, B. A. (2007). FDI and Economic Growth: Evidence from Nigeria. African Economic Research Consortium (AERC) Paper 165.
[3]	Akinlo, A. E. (2004). Foreign Direct Investment and Growth in Nigeria: An Empirical Investigation. Journal of Policy Modelling, 26, 627-639. http://dx.doi.org/10.1016/S0161-8938(04)0057-2.
[4]	Aluko, S. A. (1961). Financial Economic Development in Nigeria. The Nigerian journal of Economic and social studies 3 (1), 39-67.
[5]	Ayanwale, A. B. and Bamire, A. S. (2001). The Influence of FDI on Firm Level Productivity of Nigeria‘s Agro/Agro-Allied Sector. African Economic Research Consortium (AERC).
[6]	Eravwoke Kester Erhieyovwe and Eshanake Samuel Jimoh, (2013). Foreign Direct Investment Granger and Nigerian Growth. Journal of Innovative Research in Management and Humanities 3 (2), September, 2012. ISSN: 2141-8217.
[7]	Kabir Haruna Danja, (2012). Foreign Direct Investment and the Nigerian Economy. American Journal of Economics 2012, 2 (3): 33-40.
[8]	Lipsey R (2002), “Home and Host Country Effects of FDI”, Lidingö, Sweden.
[9]	Oji-okoro and huang huiping, (2012). An Empirical Analysis on the Contribution of Foreign Direct Investment on Nigeria Economy.
[10]	Onu Christopher, (2012). Impact of foreign direct investment on the economic growth of Nigeria. Interdisciplinary journal of contemporary research in business. 4 (5), 2012.
[11]	Oseghale, B. D., and Amonikhienan, E. E. (1987). Foreign Debt, Oil Export, Direct Foreign Investment (1960-1984). The Nigerian Journal of Economic and Social Studies, 29 (3), 359-380.
[12]	Onyali, C. I and Okafor T (2014), foreign direct investment and the Nigerian economy: Vision 2020 mission. International of business and management. 8 (16).
[13]	Ugwuegbe S. Ugochukwu, Okore Amah Okore and John Okey Onoh (2013. The Impact of Foreign Direct Investment on the Nigerian Economy. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 5 (2) 2013.
[14]	Umah, K. E (2007). The Impact of Foreign Private Investment on Economic Development of Nigeria. Nigeria Journal of Economics and financial research. 1 (3).
[15]	Wermberly and Bello (1992)’’law and development in the light of dependency theory, law and society review. 14 (3) Ithaca, New York; cornell university press.

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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

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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

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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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@article{10.11648/j.ijefm.20160403.17,
  author = {Monogbe Tunde Gabriel},
  title = {The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation)},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {3},
  pages = {143-152},
  doi = {10.11648/j.ijefm.20160403.17},
  url = {https://doi.org/10.11648/j.ijefm.20160403.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160403.17},
  abstract = {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.},
 year = {2016}
}

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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  -

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Author Information

Monogbe Tunde Gabriel

Faculty of Management Science, Department of Finance and Banking University of Port Harcourt, Choba, Rivers State, Nigeria

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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

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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

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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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@article{10.11648/j.ijefm.20160403.17,
  author = {Monogbe Tunde Gabriel},
  title = {The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation)},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {3},
  pages = {143-152},
  doi = {10.11648/j.ijefm.20160403.17},
  url = {https://doi.org/10.11648/j.ijefm.20160403.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160403.17},
  abstract = {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.},
 year = {2016}
}

Copy | Download

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  -

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