“Impact Of Foreign Portfolio Investment On Economic Growth In Nigeria:- Ude, Maryann E

ABSTRACT

This study examined the impact ofForeign Portfolio Investment (FPI) on economic growth of Nigeria. FPI flows was measured by both portfolio inflows and portfolio outflows while economic growth was measured by real gross domestic product. The study used annual data covering the periods 1986 to 2018 and the Johansen cointegration and Vector Error Correction (VECM) approach was employed. The study observed that FPI inflow had positive and significant impact on economic growth, while FPI outflows had negative and significant impact on economic growth in Nigeria. It was also found that the collective impact ofFPI inflows and FPI outflows was high as shown by the adjusted R-squared of 0.804241 which implied that approximately 80.42% of the total variations in RGDP was explained by joint impact FPI inflows and FPI outflows. Similarly, the collective impact of the explanatory variables was significantfollowing the p-value (0.000000) which was less than 0.05. Consequently, the study recommendedpolicies that will attractforeign portfolio investmentshould be pursued in order to enhance economic growth.