Impact Of Direct Foreign Investment On Nigeria Economic Growth And Development In Nigeria.

ABSTRACT

 Nigeria has been clamoring for foreign investment and economic development in the country in the last few years. The inflow of these foreign capitals into the country is strongly believed to be a facilitator to economic growth and development, which in turn leads to industrialization of the economy in the long run. This study, however evaluates the extent of the impact of the direct foreign investment on the macro-economic variables that ensure economic development in Nigeria. Multiple regression and correlation analysis was used to test the relationship between dependent variables, net exports, industrial production, real gross domestic product (RGDP) and the independent variable-direct foreign investment. Time series data from 1980 to 2008 were used for the analysis. It was discovered that each of the three macro-economic variables is positively and significantly related to direct foreign investments. In other words, direct foreign investment exerts positive and significant. Influence on the real variables of economy. An investment friendly environment and more incentives for foreign investment into the country is therefore highly recommended.