Effect of Foreign Direct Investment on the Nigerian Economy

In: Business and Management

Submitted By AYTB
Words 2647
Pages 11
International Journal of Academic Research in Business and Social Sciences
August 2014, Vol. 4, No. 8
ISSN: 2222-6990
234
www.hrmars.com
Impact of Foreign Direct Investment on Nigeria Economic Growth
Adeleke Kunle M.
Department of accountancy
Federal Polytechnic, Offa, Kwara State, Nigeria
Olowe S.O
Department of accountancy
Osun State College of Technology, Esa-Oke, Nigeria
Fasesin Oladipo Oluwafolakemi
Department of Accountancy
Osun State Polytechnic, Iree, Nigeria
DOI: 10.6007/IJARBSS/v4-i8/1092 URL: http://dx.doi.org/10.6007/IJARBSS/v4-i8/1092
Abstract
The study analyzed the impact of foreign direct investment on Nigeria economic growth over the period of 1999- 2013. The main type of data used in this study is secondary; sourced from various publications of Central Bank of Nigeria, such as; Statistical Bulletin, Annual Reports and Statement of Accounts. The regression analysis of the ordinary least square (OLS) is the estimation technique that is being employed in this study to determine the relationship between and impact of the Direct Foreign Investment on economic growth. The findings revealed that economic growth is directly related to inflow of foreign direct investment and it is also statistical significant at 5% level which implies that a good performance of the economy is a positive signal for inflow of foreign direct investment. This implies that foreign direct investment is an engine of economic growth. The paper recommended that government should liberalize the foreign sector in Nigeria so that all barriers to trade such as arbitrary tariffs; import and export duties and other levies should be reduced so as to encourage investors.
Key words: Foreign Direct Investment, Economic Growth, OLS, CBN, Nigeria
Introduction
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or…...

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