ABSTRACT
Foreign Direct Investment (FDI) plays
an important role in the growth of an economy; the growth of international
production is driven by economic and technological forces and also driven by the
ongoing liberalization of foreign direct investment and trade policies. During
the past two decades, foreign direct investment (FDI) has become increasingly
important in the developing world, with a growing number of developing
countries succeeding in attracting substantial and rising amounts of inward FDI
(Khaliq and Noy, 2007). Economic theory has identified a number of channels
through which FDI inflows may be advantageous to the host economy yet, the
empirical literature has lagged behind and has had more difficulty identifying
these advantages in practice. Hence, many studies have attempted to find out
the relationship between foreign direct investment and economic growth; and in
most cases, a positive relationship has emerged. This research, therefore tests
for the impact of foreign direct investment on economic growth in Nigeria. The
study was done with the Ordinary Least Square (OLS) method using annual data
from 1980 to 2015. The study found that there is a positive relationship
between foreign direct investment and economic growth in Nigeria. The ADF unit
root test showed that all the variables are stationary at level form. The
research result supports the classical perspective that there exist a positive
relationship between foreign direct investment and economic growth. One of the
major findings of the study is that foreign direct investment can be a factor
to boost economic growth in Nigeria. A foremost recommendation of study is that
government should try as much as possible to create a fertile environment for
investment so as to attract foreign investors. The policy if rightly
implemented promises to increase in economic growth.
UZODI, I (2021). Impact Of Foreign Direct Investment On The Growth Of Nigerian Economy . Repository.mouau.edu.ng: Retrieved Dec 22, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-foreign-direct-investment-on-the-growth-of-nigerian-economy-7-2
IHEMADU, UZODI. "Impact Of Foreign Direct Investment On The Growth Of Nigerian Economy " Repository.mouau.edu.ng. Repository.mouau.edu.ng, 30 Jul. 2021, https://repository.mouau.edu.ng/work/view/impact-of-foreign-direct-investment-on-the-growth-of-nigerian-economy-7-2. Accessed 22 Dec. 2024.
IHEMADU, UZODI. "Impact Of Foreign Direct Investment On The Growth Of Nigerian Economy ". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 30 Jul. 2021. Web. 22 Dec. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-foreign-direct-investment-on-the-growth-of-nigerian-economy-7-2 >.
IHEMADU, UZODI. "Impact Of Foreign Direct Investment On The Growth Of Nigerian Economy " Repository.mouau.edu.ng (2021). Accessed 22 Dec. 2024. https://repository.mouau.edu.ng/work/view/impact-of-foreign-direct-investment-on-the-growth-of-nigerian-economy-7-2