Abstract:
The research
also examines the relationship between t
he ARDL procedure and the fully
modified OLS approach of Phillips and Hansen to estim
ation of cointegrating
relationship between all the variables, and economic growth, these results provide
strong evidence in
favor
of a rehabilitation of the traditional ARDL approach to time
Series
econometric modelling. The ARDL approach has the addition
al advantage of
yielding consistent estimates of the long
-
run co
-
effi
cient
that is
asymptotically normal
irrespective of whether the underlying regressors are I(1) or I(0).,This research provides
an empirical analysis of the relationship between economic g
rowth and its determinants
factors with special focus on gross domestic product, foreign direct
i
nvestment and
other important factors in Nigeria, using data from the period of 1976 to 2010
, we
also
in employed ARDL bounds testing for the long run relation
ship and ECM for the short
run dynamics. The findings suggest a positive relationship between
efficient
real
GDP
and foreign direct investment and economic growth both in short run and long run.
Money supply and inflation have negative effects on economic
growth while fiscal
deficit and foreign direct investment have positive effects on growth. Foreign direct
investment is found to have significant positive effect on growth. The results are
consistent with the theoretical and empirical prediction.
