Impact of FDI on Economic Growth in South Asia: Does Nature of FDI Matters?*This article is an outcome of a project supported by South Asia Network of Economic Research Institutes under 16th RRC.

Foreign direct investment (FDI) is believed to be an important determinant of economic growth in developing countries, but its impact varies across countries. Presence of other determinants (like domestic investment, inflation, infrastructure and external trade) may augment or retard the potential impact of FDI on economic growth. Moreover, due to the non-homogeneous nature of sectoral FDI, the sectoral composition may create differential impact on economic growth. Hence, it is necessary to identify and measure the differential impact of sector-wise (primary versus secondary versus tertiary sector) FDI inflow. Exploring the nature and behaviour of overall and sectoral FDI inflow in South Asian countries in the recent past, this article has taken a holistic approach in studying and analysing the FDI-growth dynamics. The study found that the impacts of FDI in South Asia are indeed influenced by sectoral composition of FDI.

The impact of FDI on Nigeria’s export performance: a sectoral analysis

Purpose The purpose of this paper is to examine the foreign direct investment (FDI)–exports relationship in Nigeria using disaggregated FDI and export data. Design/methodology/approach This paper applies the autoregressive distributed lag cointegration approach in examining the long-run relationship between FDI and exports. Findings The results suggest that aggregate FDI has a positive and statistically significant long-run impact on total exports. Once exports are disaggregated into oil and non-oil exports, the positive, cointegrating relationship holds only for oil exports. When disaggregated by sector, primary sector and manufacturing sector FDI have a positive and significant long-run relationship with both total exports and oil exports but service sector FDI does not appear to have any significant influence on Nigerian exports. Originality/value This is the first paper that employs both sectoral FDI and disaggregated export data to examine the FDI–exports nexus in Nigeria.