FOREIGN DIRECT INVESTMENT, EXCHANGE RATE FLUCTUATIONS AND ECONOMIC GROWTH IN NIGERIA (2012 - 2021)
Keywords:
Economic Growth, Exchange Rate Fluctuations, Export Rate, Foreign Direct Investment, Nigeria.Abstract
This study examined the effect of foreign direct investment (FDI) and exchange rate (ER) fluctuations on economic growth in Nigeria. An ex post facto research design was used. Data were sourced from the CBN statistical bulletin and Bureau of Statistics publication covering the time frame of 10 years, from 2012 to 2021. Using regression analysis via E-view 9.0, the study revealed that FDI, export rate, and exchange rate have positive but insignificant effects on economic growth in Nigeria. However, the inflation rate has a negative significant effect on economic growth in Nigeria. This implies that as foreign direct investment, export, and exchange rate increase, gross domestic product also increases and vice versa. Likewise, the increase in the inflation rate led to a decrease in the economic growth of the country and, thus, became significant to the gross domestic product. This study, therefore, concluded that foreign direct investment and exchange rate fluctuation affect the growth of the Nigerian economy.
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