THE IMPACT OF DOMESTIC INVESTMENT ON THE ECONOMIC GROWTH OF NIGERIA
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ABSTRACT
Nigeria domestic investment has not been growing over time and it is with this that this study aimed at investigating the impact of domestic investment and economic growth in Nigeria. The model was subjected to a Co-integration test in order to determine the long run relationship between domestic investment, and economic growth in Nigeria for the period of 1980-2016. The Granger causality test was also used to determine the causality between domestic investment, and economic growth in Nigeria for the period of 1980-2016.The results also showed long run significant relationship exists between the variable examined and domestic investment. Granger cause economic growth in Nigeria within the period under study. The study also found that domestic investment positively influences real gross domestic product. The study recommends that government should create enabling an environment for domestic investment to rise through the adoption of macroeconomic policies that will boost investment opportunities in Nigeria.
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