@article{onayemi2019absorptive,
  title = {Absorptive Capacity and the Impact of Foreign Direct Investment on Economic Growth in Nigeria},
  author = {Sherifatu Olukorede Onayemi and Philip Akanni Olomola and Philip Olasupo Alege},
  year = 2019,
  url = {https://ibimapublishing.com/articles/JESR/2019/105980/},
  journal = {Journal of Economics Studies and Research},
  volume = 2019,
  pages = 12,
  doi = 10.5171/2019.105980,
  abstract = {In order to achieve a sustainable rate of economic growth, Nigeria like other developing countries needs to adopt and implement new technologies available in developed countries. Foreign direct investment can perform the role of bridging this gap because it facilitates technological diffusion. However, the effect of foreign direct investment on the economic growth of developing economies may not be automatic. Some studies have found that foreign direct investment affects growth only when a certain level of absorptive capacity is reached. This study investigated this assertion in Nigeria. The objectives of the study are to examine the effect of foreign direct investment on economic growth without conditioning on absorptive capacity in Nigeria and to investigate the effect and extent of absorptive capacity on foreign direct investment and economic growth in Nigeria. The empirical study employed the Ordinary Least Square (OLS) technique of estimation on a time series data that span from 1980-2016. The major findings of the study revealed that foreign direct investment alone cannot promote economic growth except there is sufficient absorptive capacity. Only human capital and domestic investment have sufficient absorptive capacity to support foreign direct investment in promoting economic growth but openness, financial development and infrastructure do not have sufficient absorptive capacity to support foreign direct investment in promoting growth in Nigeria. The study, therefore, recommended that policies should be directed towards developing the levels of human capital, infrastructure, domestic investment and the domestic financial system, instead of attracting foreign direct investment through tax exemption.},
  keywords = {Absorptive Capacity, Economic Growth, Foreign Direct Investment.},
  note = Article ID: 105980
}