Foreign Private Investment and Manufacturing Sector's Growth in Nigeria: A Bounds Testing Co-Integrative Approach

The paper examines empirically, whether or not foreign private investment (FDI), bank credit to the private sector (BCR), manufactured goods import (MGM), real per capita income (PCY) and inflation rate (INF) impact significantly and positively on manufacturing output (MNQ) in Nigeria over the sample period of twenty-seven year from 1995 and 2022. The newly developed bounds testing approach to co-integration was adopted in the study. The results obtained reveal that both the short-run and long-run growth effects of manufacturing output in Nigeria are significant and positive. These findings on foreign private investment underscores the imperative for adopting appropriate measures that would attract more foreign investments to the manufacturing sector in Nigeria. Having ascertained the significance of foreign private investment positively influencing manufacturing output in Nigeria, the study submits that a set of policies to the Nigerian government with a view to enhancing foreign private investment and fostering manufacturing sector's growth in Nigeria should be vigorously pursued.