The Effects of Foreign Aid and Foreign Direct Investment on Human Capital Development in Nigeria: Evidence from 1990 to 2018

Oluwaseun Ibukun · Joshua Alahira · Bankole Kumolu-Johnson · Babatunde Oloyede

1 citations0/0 files storedJournal of Human Resource and Sustainability Studies

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International Development and Aid Economic Growth and Productivity Economic Growth and Development

Abstract

Economic growth and human development have been one of the top goals of every forward-looking country; hence there is a constant need to analyze the important factors driving its growth or decline. This study explores the impact of foreign aid and foreign direct investment (FDI) on the human capital development mirrored by human development index (HDI) in Nigeria from 1990-2018 using World Bank indicators. Johansen cointegration test results show a long-term relationship between foreign aid, FDI and human development index. Regression results show a positive relationship between foreign aid and HDI but a negative relationship between FDI and HDI.

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References

2002On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?1996Foreign Direct Investment and Growth in EP and is Countries 2006Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability 2014Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models 2004Foreign direct investment and growth in Nigeria 2008The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub‐Saharan Africa 2002Foreign Direct Investment 2005Determinants of human capital formation and economic growth of African countries

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