FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN NIGERIA (1985-2019)

Abstract

This paper examined the effects of Foreign Direct Investment (FDI) on the Economic growth
in Nigeria 1985-2019). The study employed the use of Ordinary Least Square (OLS)
regression technique to test the time series data from 1985 – 2019. The was set to know the
degree of the relationship that exist foreign direct investment and economic growth (gross
domestic product) in Nigeria. The regression analysis results showed that there is a
significant link between FDI and economic growth in Nigeria as suggested by extant
previous literature. It was recommended that Nigeria should ensure a stable political
system, with friendly economic policies to stimulate the growth and expansion of foreign
direct investments in Nigeria. Secondly, Nigeria should pursue trade liberalization and open
up her economy.