There have been controversies regarding the effect of foreign direct investment on the growth of the host country’s economy. While some researchers suggest a positive effect, others found a negative effect. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in Nigeria. The study covered the period 1981 to 2015. The study used secondary data derived from the Central Bank of Nigeria statistical bulletin and publications of the National Bureau of Statistics. The study employed multiple regression technique and Gretl 1.9.8 econometric software was used for the analysis. The results showed that foreign direct investment has a positive and significant effect on gross domestic product. It was also found that exchange rate has a positive but not significant effect on gross domestic product. Thus, the study concluded that foreign direct investment has a positive effect on economic growth in Nigeria as opposed to the findings and belief of some researchers and other stakeholders that foreign direct investment has a negative effect on the growth of the economy. It was recommended that government should improve the state of infrastructures in the country in order to encourage meaningful investments in the economy. Also, the Central Bank of Nigeria should come-up with policies that will help to stabilize the Naira exchange rate vis-à-vis the major currencies of the world, like the United States Dollar. This will boost the investors’ confidence in the economy.
| Published in | European Business & Management (Volume 2, Issue 2) |
| DOI | 10.11648/j.ebm.20160202.14 |
| Page(s) | 40-46 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Foreign Direct Investment, Exchange Rate, Economic Growth, Nigeria
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APA Style
Emmanuel Isaac John. (2016). Effect of Foreign Direct Investment on Economic Growth in Nigeria. European Business & Management, 2(2), 40-46. https://doi.org/10.11648/j.ebm.20160202.14
ACS Style
Emmanuel Isaac John. Effect of Foreign Direct Investment on Economic Growth in Nigeria. Eur. Bus. Manag. 2016, 2(2), 40-46. doi: 10.11648/j.ebm.20160202.14
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Download@article{10.11648/j.ebm.20160202.14,
author = {Emmanuel Isaac John},
title = {Effect of Foreign Direct Investment on Economic Growth in Nigeria},
journal = {European Business & Management},
volume = {2},
number = {2},
pages = {40-46},
doi = {10.11648/j.ebm.20160202.14},
url = {https://doi.org/10.11648/j.ebm.20160202.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20160202.14},
abstract = {There have been controversies regarding the effect of foreign direct investment on the growth of the host country’s economy. While some researchers suggest a positive effect, others found a negative effect. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in Nigeria. The study covered the period 1981 to 2015. The study used secondary data derived from the Central Bank of Nigeria statistical bulletin and publications of the National Bureau of Statistics. The study employed multiple regression technique and Gretl 1.9.8 econometric software was used for the analysis. The results showed that foreign direct investment has a positive and significant effect on gross domestic product. It was also found that exchange rate has a positive but not significant effect on gross domestic product. Thus, the study concluded that foreign direct investment has a positive effect on economic growth in Nigeria as opposed to the findings and belief of some researchers and other stakeholders that foreign direct investment has a negative effect on the growth of the economy. It was recommended that government should improve the state of infrastructures in the country in order to encourage meaningful investments in the economy. Also, the Central Bank of Nigeria should come-up with policies that will help to stabilize the Naira exchange rate vis-à-vis the major currencies of the world, like the United States Dollar. This will boost the investors’ confidence in the economy.},
year = {2016}
}
TY - JOUR T1 - Effect of Foreign Direct Investment on Economic Growth in Nigeria AU - Emmanuel Isaac John Y1 - 2016/12/20 PY - 2016 N1 - https://doi.org/10.11648/j.ebm.20160202.14 DO - 10.11648/j.ebm.20160202.14 T2 - European Business & Management JF - European Business & Management JO - European Business & Management SP - 40 EP - 46 PB - Science Publishing Group SN - 2575-5811 UR - https://doi.org/10.11648/j.ebm.20160202.14 AB - There have been controversies regarding the effect of foreign direct investment on the growth of the host country’s economy. While some researchers suggest a positive effect, others found a negative effect. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in Nigeria. The study covered the period 1981 to 2015. The study used secondary data derived from the Central Bank of Nigeria statistical bulletin and publications of the National Bureau of Statistics. The study employed multiple regression technique and Gretl 1.9.8 econometric software was used for the analysis. The results showed that foreign direct investment has a positive and significant effect on gross domestic product. It was also found that exchange rate has a positive but not significant effect on gross domestic product. Thus, the study concluded that foreign direct investment has a positive effect on economic growth in Nigeria as opposed to the findings and belief of some researchers and other stakeholders that foreign direct investment has a negative effect on the growth of the economy. It was recommended that government should improve the state of infrastructures in the country in order to encourage meaningful investments in the economy. Also, the Central Bank of Nigeria should come-up with policies that will help to stabilize the Naira exchange rate vis-à-vis the major currencies of the world, like the United States Dollar. This will boost the investors’ confidence in the economy. VL - 2 IS - 2 ER -
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