FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN NIGERIA

Ahmed Oluwatobi ADEKUNLE, Olubunmi Florence OSEMENE (PhD), Muri Wole ADEDOKUN, Olufunke Aminat OYELEYE

Abstract

Foreign Direct Investment is a challenge for many developing countries. The problem is more acute in a country like Nigeria where political instability and basic infrastructures is lacking. The aim of this study is to investigate the impact of FDI on economic growth in Nigeria from 1985 to 2013.Ordinary Least Square (OLS), units root test, Johansen Co-integration Test and Vector Error Correction Model (VECM) were used to analyze the data. It was discovered that FDI impacted positively on economic growth while trade openness was unfavorable to it.

Keywords

Foreign Direct Investment, Economic Growth, Gross Domestic Product, Openness of the Economy.

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