Impact Foreign Direct Investment On Economic Growth:empirical Evidence Fromnigeria, From 1981 –2017

Authors: Wesley Idoge; Omerah, James U.; Zulaiha A. Zubair
Views: 375 Downloads: 0

This paper is an attempt to investigate the impact of foreign direct investment on economic growth in Nigeria from 1981 to 2017. The study adopted the ordinary least square method of data analysis (OLS) to analyse a time series data using the e-view 9.0. The study reveals that foreign direct investment has positive impact on the growth of the Nigerian economy. The stationary test result showed that the variable of the model are stationary at the first difference 1(1). The granger causality test indicated that long-run causal relationship exists between FDI and economic growth. A unidirectional causality between FDI and economic growth was also observed. The study concludes that FDI has contributed significantly to the growth of the Nigerian economy. The study therefore recommends that for the economy to sustain the growth level achieved, government should intensify the drive to encourage foreign investors to bring in the needed capital for investment development and thereby increasing the level economic growth in Nigeria.