The Estimation of Long-run Relationship between Economic Growth, Investment and Export in Nigeria.

Abstract

This paper attempts to estimate the relationship between economic growth, investments and export in Nigeria.The Johansen (1981) cointegration test and Granger causality test was employed to investigate the relationship of the variables for the period 1970-2005. The cointegration tests showed no long run relationship among the variables. However, the empirical result of the Granger causality test shows a bidirectional relationship between Investment (Inv) and Economic growth (Y) and also a bidirectional relationship between Investment and Export (Ex); but the result of the causation between Investment and growth was statistically insignificant.