Chidinma Catherine Mbah, Emilia Mgbemena, Assoc. Prof. Stella Mbah


Economists and policymakers are constantly worried about growth drivers: understanding growth drivers could tantamount to getting an economy into the desired growth trajectory. One of the identified growth drivers in economic literature is investment and solid minerals. However, there is a scarcity of studies on the linkages between investment, solid minerals and economic growth. Using a multivariate vector autoregressive (VAR) model and annual time series from 1981-2016, this study examined how linkages between investment and solid mineral development in Nigeria. Prior to VAR estimation, the study investigated the time-series properties of the research data using ADF and Ng-Perron test of unit root, Autoregressive Distributed Lag cointegration test and Vector Error Correction Mechanism (VECM). The results obtained revealed that the time series are a realization of stochastic and cointegrated processes. Again, it shows that as the times series move towards their long-run equilibrium path, any disequilibrium is substantially corrected in the current period. The results of the VAR estimation indicate that Domestic investment does not significantly drive solid mineral development in Nigeria while foreign direct investment is positively related to solid mineral development; it has not significantly driven solid mineral development within the period under study. On the other hand, foreign portfolio investment exerts a negative impact on solid mineral development in Nigeria. Based on the findings; the study recommends among other things that the government should embark on reforms that target the improvement of investment guidelines, operational procedures, and regulatory frameworks, especially in the solid mineral subsector.


Solid mineral, investment, domestic investment, foreign direct investment, foreign portfolio investment, Nigeria.

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