Premium Essay

The Impact of Chinese Investment and Trade on Nigeria Economic Growt

In: Business and Management

Submitted By damonyte
Words 9274
Pages 38
ATPC

African Trade Policy Centre

Work in Progress

No. 77

ATPC

Economic Commission for Africa

The Impact of Chinese Investment and Trade on Nigeria Economic
Growth

2009

Djeri-wake Nabine

Abstract
This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth.
The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares
Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance
Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime.

A - CEA
EC
E

ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development
Agency (CIDA)
Material from this publication may be freely quoted or reprinted. Acknowledgement is requested, together with a copy of the publication The views expressed are those of its authors and do not necessarily reflect those of the United Nations.

ATPC
Work in Progress

Economic Commission for Africa

The Impact of Chinese Investment and Trade on Nigeria Economic
Growth

Djeri-wake Nabine*

The views expressed are those of the authors and do not necessarily reflect those

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