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 growth due to its favourable and significant association with economic growth. In the present decade, however, FDI influx and Nigerian economic development appear to be in opposition. This study looks at the influence of foreign direct investment on Nigeria's economic development from 2007 to 2017, as it is thought that FDI has a geographical and time-specific impact. Time series secondary data was used for regression analysis. The regression analysis model specification was generated from the Solow growth model. According to the findings of the study, all independent factors have a positive link with economic growth. the study's scope, but only FDI was statistically inconsequential to the country's economic development over the time. The model's R2 was 0.96, indicating that it can explain 96 percent of the fluctuations in economic development. The study concludes that in order to ensure that foreign direct investment trickles down into Nigeria's economy, the flow of FDI into the country must be monitored and influenced to direct it into sectors that require massive investment, such as the agricultural sector, which has been criticised in the past for its failure or inability to attract FDI, despite the fact that the sector is the first point of contact if Nigeria is to enjoy sustained economic growth.

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