ABSTRACT

This work analyzes the impact of foreign direct investment (FDI) on Economic Growth in Nigeria within the period 1999-20 12. The objective of this paper is to assess the impact of FDI on Economic Growth in Nigeria within the period under review. The paper employed multiple regression models to determine the impact of some external or macro variables on the gross domestic product (GDP) proxy for economic growth in Nigeria. The paper used time series data to ascertain the inflow of FDI to the Nigerian economy and its implications on economic growth. The study found that FDI has positive impact upon the economy. The multiple regression results also revealed that FDI, exchange rate and export earnings has a positive significant impact, on GDP during the study period. The study concluded that FDI induces the inflow of capital, technical know-how and managerial capacity which can stimulate domestic investment and accelerate the pace of economic growth. Considering the crucial role of FDI, the paper recommended the need for maintaining a steady economic growth and low inflation, increased investment in human capital development and increased national savings and investments among others.