Title: Asymmetric Effects of Official Capital Inflows on Economic Growth in Nigeria
Authors: Ifeoma Augusta Eboh, Ebele Stella Nwokoye, Metu Amaka Gertrude
Volume: 9
Issue: 8
Pages: 40-51
Publication Date: 2025/08/28
Abstract:
The study examines the asymmetric effects of official capital inflows on economic growth in Nigeria, covering the periods from 1981Q1 to 2021Q4. The non-linear ARDL (NARDL) co-integration technique was employed in analysing the data. It was found that a negative asymmetry changes in net bilateral aid inflow had positive and significant effect on economic growth in the long run. It was also found that in the long run, positive asymmetry changes in debt inflows as shares of GDP had positive and significant effect on economic growth, while a negative asymmetry change in debt inflows as shares of GDP had negative and significant effect on economic growth. In the short run, it was found that positive asymmetry changes in net official development assistance had positive and significant effect on economic growth. Also in the short run, the results showed that a negative asymmetry change in debt inflows as shares of GDP had negative and significant effect on economic growth. Providers of official capital should be observant of the capital absorptive capacity of the country's (Nigeria's) ability to utilize the official capital and work with the country to eliminate bottlenecks to aid official capital effectiveness.