DOES FOREIGN DIRECT INVESTMENT MATTER FOR NIGERIAN ECONOMY? | Journal of Economics and Trade

Foreign direct investment has long been recognised as one of a country's sources of economic development, as it has been shown to have a positive and important relationship with growth. In the current decade, however, FDI inflow and Nigerian economic development seem to be working in opposite directions. This study looks at the effect of foreign direct investment on Nigeria's economic growth between 2007 and 2017, as it is thought that FDI has a location and time-specific impact.

Time series secondary data was used for regression analysis.The regression analysis model specification was derived from the Solow growth model.For the purposes of the study, all independent variables had a positive relationship with economic growth, with the exception of FDI, which was statistically insignificant to the country's economic growth during the time. The model's R2 was 0.96, indicating that it can explain 96 percent of the differences in economic growth. The study concludes that in order to ensure that foreign direct investment (FDI) trickles down into Nigeria's economy, the flow of FDI into the country must be controlled and influenced to direct it into sectors that need significant investment, such as the agricultural sector, which has been noted for its failure over the years.orinability to attract foreign direct investment, despite the fact that the sector is the first point of contact for sustained economic growth in Nigeria.

Please see the link - https://ikprress.org/index.php/JET/article/view/5065