Energy Resources, Domestic Investment and Economic Growth: Empirical Evidence from Nigeria

The paper examined whether investment serves as a channel through energy could promote economic growth in Nigeria. A model that incorporated energy as a separate input and as an indirect input was developedand estimated. The results showed that the potential of investment to enhance economic growth is significantlydepressed by the energy resources dependence. Although pubic investment was found to be a channelthrough which energy resources enhanced economic growth in Nigeria. There is evidence that Dutch disease/resource curse problem is a Nigerian phenomenon as energy abundance is found to significantly impair economic growth in Nigeria.