Upshot of Foreign Capital Flows on Real Sector Growth in Nigeria
This study examines the upshot of foreign capital inflows on real sector growth in Nigeria from 1986 to 2019. The study sets out to achieve the effect of foreign direct investment (FDI), foreign portfolio investment (FPI), and official development assistance (ODA) on real sector growth in Nigeria. The study employed the SVAR model to achieve the study objective and the data sets used for this study were secondary sources. The study found that the inflows of FDI and ODA influence the industrial sector output significantly than the agricultural sector, thereby making the sector unattractive to foreign investors. The study concludes that inflows of foreign direct investment and official development assistance exert influence on industrial sector output than the agricultural sector. The study recommends that policymakers must develop policies that are foreign agricultural capital friendly to attract more foreign capital to the agricultural sector for the growth of economic activities in the industry.