• Export-Import Misalignment and Gross Fixed Capital Formation in Nigeria

    Author(s):
    Dr. Akaninyene Orok (see profile) , John John, Effiong Okon, Prof Chris Udoka
    Date:
    2022
    Group(s):
    Business Management, Literature and Economics
    Subject(s):
    Business, Investments, Foreign
    Item Type:
    Article
    Tag(s):
    misalignment, amortization, trade openness, foreign direct investment
    Permanent URL:
    https://doi.org/10.17613/bx9s-sc44
    Abstract:
    This study examines export-import misalignment and gross fixed capital formation in Nigeria. Three variables are used and myriad of control variables, spanning the period of 1981-2020. The model was tested with several econometrics and statistical instruments. The results from the findings indicates that, export-import misalignment has a negative and an insignificant impact on gross fixed capital formation, however, export and import impact gross fixed capital formation differently. There was a 30.3% threshold evidence as indicated in the F-statistics value in the model. We recommend that, the federal government of Nigeria should reprioritize her needs. They should spend more on capital expenditures as against the current trend of 68:32% allocations to recurrent and capital expenditures respectively. Efforts must be made to mobilize the desired level of gross national savings that could be big enough to attract foreign direct investments as FDI will help to complement our domestic savings. Government should work on her potentially exportable commodities. The proceeds should be utilized in the importation of needed technical tools and components. Basic infrastructures like good roads, electricity supply and security must be seen to be adequate. This will help to reduce the drudgeries currently being faced by manufacturers. Efforts should be geared towards a reduction in exchange rate distortion, volatility and general mismanagement. Policy formulators in Nigeria need to enact some investor friendly policies that will encourage, promote and attract more capital inflows (Be it official or private inflows) and provide a conducive and enabling environment for gross fixed capital formation to thrive. There is need to play down on speculative businesses and to invest into the real sectors of the economy.
    Metadata:
    xml
    Published as:
    Journal article     Show details
    Pub. DOI:
    10.56397/FMS.2022.12.01
    Publisher:
    Aurora Publishing House Limited
    Pub. Date:
    2022-12-13
    Journal:
    Frontiers in Management Science
    Volume:
    1
    Issue:
    3
    Page Range:
    1 - 12
    ISSN:
    2788-8592
    Status:
    Published
    Last Updated:
    9 months ago
    License:
    Attribution

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