FOREIGN DIRECT INVESTMENT FLOWS AND ECONOMIC GROWTH IN NIGERIA
Abstract
The study examined the relationship between foreign direct investment and economic growth in Nigeria for the period of 1997-2022. Gross domestic product was used as proxy for Nigeria economy as the dependent variable, while foreign direct investment inflow and foreign direct investment outflow constitutes the independent variables. Time series data was adopted from the central bank of Nigeria statistical bulletin and World bank data, and analysed using the Ordinary Least Square (OLS) technique. The findings reveal a positive and significant relationship between foreign direct investment inflows, foreign direct investment outflows, and Gross Domestic Product in Nigeria. The outcomes suggest that FDI plays a crucial role in contributing to economic growth in the country. As such, we recommended that government should note that FDI is an integral part of trade, hence policies that promote foreign investment and at the same time protect, supplement domestic production and investment, as well as complements the development goals of the host countries should be encouraged.
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