Effect of Foreign Investment on the Economic Growth in Nigeria

Abstract

This study critically looked at the effect of foreign investment on economic growth in Nigeria. Data for period of 32 years collected from CBN statistical bulletin 2011 were used for analysis. Techniques such as unit root test and OLS were adopted to estimate models and investigate stationarity. The result showed that there was direct effect of foreign investment on the Nigerian economy growth. Therefore, the empirical study further recommended that there is need for total foreign investment encouragement and creation of stable atmosphere for investment to strive thereby resulting to investment inflows in Nigeria that will contribution to economic growth for sustainable development. 

Keywords: OLS, Unit roots, foreign investments, relationship, GDP.