Abstract
The
study examined effect of foreign direct investment on economic growth in
Nigeria during the period 1997 to 2018. It adopted ex post facto research
design because the data used is in existence. Data were extracted from Central
Bank of Nigeria statistical bulletin. Based on the specific objectives, and
research questions two research hypotheses were raised. The study conducted
augmented DickeyFuller unit root test and found that foreign direct investment
and real gross domestic product were stationary and integrated at first
difference while per capital income was stationary and integrated at second
difference. The study therefore used Johansen co-integration to estimate the
relationship between foreign direct investments and real gross domestic product
while ARDL Bounds test for the relationship between foreign direct investments
and per capital income. The study established that foreign direct investment
has positive insignificant relationship with real gross domestic product on the
short run while on the long run foreign direct investment has positive
significant relationship with real gross domestic product economic growth of
Nigeria. It also established that there exist positive significant relationship
between foreign direct investments and per capital income and there is long run
relationship between foreign direct investment and per capital income of
Nigeria. It further found that foreign direct investment has significant effect
on percent change in real gross domestic product of Nigeria and there is
significant effect of foreign direct investment on per capital income in
Nigeria and concluded that foreign direct investment has significant effect on
economic growth of Nigeria. It therefore recommended that government should
ensure that incentives are given to attract foreign investors invest in
specific sector such as manufacturing to enhance economic growth of the country
and foreign direct investments should be encouraged to invest in the real
sector so as boost per capita income
OHAKWE, C (2024). Impacts of Foreign Direct Investment on the Economic Growth in Nigeria:- Ohakwe Mmechukwu C. Mouau.afribary.org: Retrieved Sep 08, 2024, from https://repository.mouau.edu.ng/work/view/impacts-of-foreign-direct-investment-on-the-economic-growth-in-nigeria-ohakwe-mmechukwu-c-7-2
CYNTHIA, OHAKWE. "Impacts of Foreign Direct Investment on the Economic Growth in Nigeria:- Ohakwe Mmechukwu C" Mouau.afribary.org. Mouau.afribary.org, 26 Jul. 2024, https://repository.mouau.edu.ng/work/view/impacts-of-foreign-direct-investment-on-the-economic-growth-in-nigeria-ohakwe-mmechukwu-c-7-2. Accessed 08 Sep. 2024.
CYNTHIA, OHAKWE. "Impacts of Foreign Direct Investment on the Economic Growth in Nigeria:- Ohakwe Mmechukwu C". Mouau.afribary.org, Mouau.afribary.org, 26 Jul. 2024. Web. 08 Sep. 2024. < https://repository.mouau.edu.ng/work/view/impacts-of-foreign-direct-investment-on-the-economic-growth-in-nigeria-ohakwe-mmechukwu-c-7-2 >.
CYNTHIA, OHAKWE. "Impacts of Foreign Direct Investment on the Economic Growth in Nigeria:- Ohakwe Mmechukwu C" Mouau.afribary.org (2024). Accessed 08 Sep. 2024. https://repository.mouau.edu.ng/work/view/impacts-of-foreign-direct-investment-on-the-economic-growth-in-nigeria-ohakwe-mmechukwu-c-7-2