Technological Advancement and Economic Growth in Nigeria
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This study examines the nexus between technological advancement and economic growth in Nigeria employing a sample splitting and threshold approach from 1981 to 2014. Economic growth as the dependent variable was proxy by Gross Domestic Product (GDP). Federal Government Expenditure (GE), Gross Fixed Capital Formation (GFCF), Trade Openness (TO), Exchange Rate (EXR), and Total Factor Productivity (TFP) were used as the independent variables. Data for the study were obtained from the Penn World Table and World Development Indicators, 2017, respectively. The threshold test indicated the existence of a threshold point, estimated to be 0.8452. The results showed that in the absence of technological advancement or when it is below the threshold point, an addition to the existing stock of capital could derail economic growth; however, if technological progress is beyond the threshold point, all the macroeconomic variables would be growth-enhancing. Based on the findings of this study, a macroeconomic framework that incorporates technological advancement as an integral component is recommended. This could be achieved in Nigeria through investments in ICT infrastructure as well as research and development, the internalization of technologically-driven services, and the adoption of modern transportation systems propelled by technology. This recommendation is plausible because technological progress is paramount for sustained long-run economic growth in Nigeria.