An Empirical Analysis of the Dynamic Relationship between Macroeconomic Determinants and Economic Growth in Nigeria from 1970 to 2023
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Universiti Malaysia Sarawak (UNIMAS)
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Nigeria, Africa’s most populous country, has seen inconsistent economic growth over the years, shaped by population dynamics, macroeconomic policies, and the complex economic landscape. In order to determine the individual and combined effects of the key variables, such as foreign direct investment, population growth, inflation, merchandise exports, and exchange rates, this study analyzes the macroeconomic determinants of economic growth in Nigeria by using data from 1970 to 2023. The main objective of this study is to assess how these macroeconomic determinants affect the economic growth of Nigeria over the long run, analyzing their dynamic relationship. Using secondary data from reliable national and international databases, including the World Bank’s World Development Indicators, International Monetary Fund (IMF), United Nations Conference on Trade and Development (UNCTAD), National Bureau of Statistics, and Central Bank of Nigeria, the study adopts a robust time-series analysis. To evaluate shortterm fluctuations and long-term trends, econometric techniques such as the Augmented Dickey-Fuller unit root test, the Phillips-Perron stationary test, the Kwiatkowski-Phillip- Schmidt-Shin test, cointegration analysis, and the Vector Error Correction Model are used. The insights derived from empirical analysis aim to inform policymakers and the general public by providing evidence-based recommendations to address economic challenges and foster long-term growth.