Ekonomické rozhľady/Economic Review 4/2021

FOREIGN DIRECT INVESTMENT AND EXTERNAL DEBT IMPACTS ASSESSMENT ON ENVIRONMENTAL RESOURCES DEPLETION IN NIGERIA

ADEROPO RAPHAEL ADEDIYAN[1]

UCHENNA KINGSLEY CHIGOZIE[2] 

VENUS NMAKANMMA OBADONI[3]

Hodnotenie vplyvov priamych zahraničných investícií a vonkajšieho dlhu na vyčerpanie environmentálnych zdrojov v Nigérii

https://doi.org/10.53465/ER.2644-7185.2021.4.361-380

 

Abstract:The public interest in justness, equity and fairness in the use of environmental resources between the present and future generations have raised concern about the current depletion rate of environmental resources in Nigeria. Several socioeconomic factors are involved. Worrisome however is the inflow of foreign direct investment and external debt escalation in recent years in the economy. Importantly, we asked, do they contribute to the depletion of environmental resources in Nigeria? In that, we modelled the implications of growth in FDI and external debt on four cases of environmental resources depletion (forestry, solid minerals, fisheries, and crude oil resources productions). The estimated results suggested that though the depletion rate of environmental resources like crude oil depends largely, over the long run and short run, on the movement in FDI inflow, critical to the level of depletion of the forest is the short run effect of external debt. Furthermore, the depletion level of fisheries responds positively only to a change in FDI with a lag in the short run. In terms of solid minerals, we found a long run impact of external debt. Therefore, provided the impact of a rise in FDI and external debt on the depletion of environmental resources is subject to the particular resource and time in Nigeria, selective policies based on the FDI and external debt management is appropriately adequate to control the level of depletion of environmental resources in Nigeria for the benefit of the future generation. 

Keywords: External debt, FDI, environmental resources, resources depletion, Nigeria 

JEL Classification: H63, 013, Q22, Q23, Q32 

Fulltext: PDF

Online publication date: 15 December 2021

To cite this article (APA style):

Adediyan, A., R., Chigozie, U., K., & Obadoni, V., N. (2021). Foreign Direct Investment And External Debt Impacts Assessment on Environemntal Resources Depletion in Nigeria. Ekonomické rozhľady – Economic Review, 50(4), 361 – 380. https://doi.org/10.53465/ER.2644-7185.2021.4.361-380

 

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[1] Aderopo Raphael Adediyan, University of Benin, Edo State, e-mail: adediyan@yahoo.com, orcid id https://orcid.org/0000-0001-5875-0021

[2] Uchenna Kingsley Chigozie, University of Benin, Edo State, e-mail: uchenomics@gmail.com, orcid id https://orcid.org/0000-0003-2487-8603

[3] Venus Nmakanmma Obadoni, University of Benin, Edo State, e-mail: venusobadoni@gmail.com, orcid id https://orcid.org/0000-0002-8793-9867