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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Domestic Private Investment and Economic Growth in Nigeria: Issues and Further Consideration

Kalu, Christopher U., Mgbemena O. Onyinye

http://dx.doi.org/10.6007/IJARBSS/v5-i2/1489

Open access

This study re-considers the empirical investigation of the link between domestic private investment and economic growth in Nigeria, using the Cob-Douglas model framework. The model is estimated using Error Correction Modeling (ECM) approach and annual data covering 1970 to 2012 was used. The study shows the significance of investment on real gross domestic product (RGDP). The result of tests reveals equilibrium relationship between real GDP and its determinants in the long and short-run. An important finding of the study is that, like most other studies, Foreign Direct Investment (FDI) should at best complement domestic private investment. We therefore, conclude that macroeconomic policies and overall macroeconomic stability is quite essential for the promotion of domestic private investment.

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