The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation)
International Journal of Economics, Finance and Management Sciences
Volume 4, Issue 3, June 2016, Pages: 143-152
Received: Apr. 7, 2016; Accepted: Apr. 16, 2016; Published: May 26, 2016
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Author
Monogbe Tunde Gabriel, Faculty of Management Science, Department of Finance and Banking University of Port Harcourt, Choba, Rivers State, Nigeria
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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.
Keywords
Multinational Operations, Granger Causality, Economic Growth
To cite this article
Monogbe Tunde Gabriel, The Behavioural Effect of Multinational Operations and Its Performance on the Nigeria Economy (An Empirical Investigation), International Journal of Economics, Finance and Management Sciences. Vol. 4, No. 3, 2016, pp. 143-152. doi: 10.11648/j.ijefm.20160403.17
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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