Multiple Linear Regression Of Gross Domestic Product (Gdp) On Some Selected Macroeconomic Variables In Nigeria:- Mbadinauwa Adanma M

ABSTRACT

This study examined the relationship between Gross Domestic Product (GDP) and some selected macroeconomic variables (Foreign Direct Investment (FDI), inflation rate, Government consumption. Government expenditure and net exports) in Nigeria using multiple linear regression analysis. Data used for this study were sourced from CIA annual reports and statistical bulletin. The data spanned a period of 30 years (1981- 2010).The study revealed that there is a positive relationship between Gross Domestic Product (GDP) and each of these macroeconomic variables; Foreign Direct Investment (FDI), Government consumption, Government expenditure and net exports while inflation rate was found to have a negative impact on Gross Domestic Product (GDP). The value of co-efficient of determination (R) is 92.8%, showing that only 92.8% change in GDP has been explained by Foreign Direct Investment (FDI), inflation rate, Government consumption, Government expenditure and net export while the remaining 7.2% is unexplained by the model. The fitted multiple regression model was found to be adequate based on a high value of coefficient of determination (92.8%). Analyses of the residuals from the fitted model equally confirmed the adequacy of the model.