| Summary: | Foreign direct investment (FDI) is what most countries strive to attract as it is an advantageous tool for economic development. Nigeria not being left out also joined the rest of the world in seeking FDI as shown by the formation of the New Partnership for Africa’s Development(NEPAD, which is responsible for attracting FDI to Africa as a major component.
This study looks into the impact of foreign direct investment on Nigerian economy between 1991 and 2010.
The study was carried out using both descriptive analysis and regression analysis of ordinary least square with the aim of establishing the relationship between foreign direct investment, gross capital formation, gross domestic product, industrial production and export.
It was discovered that foreign direct investment has positive impacts on the selected macro-economic variables. It was then suggested that the federal government should design attractive packages to encourage foreign investors, create the enabling political and economic environments, address the issue of unrest and strengthen the institutional factors.
This study investigated both theoretical and empirical impacts of FDI and economic growth in Nigeria and examined the determinants of FDI into the Nigerian economy. Secondary data was sourced from the Central Bank of Nigeria, International Monetary Fund and the Federal Office of Statistics.
|
|---|