Relationship Between FDI, Capital Market and Nigerian Economy

Abstract

This research work explored the relationship between FDI, capital market and the Nigerian economy. Three hypotheses were formulated and tested using data obtained from CBN statistical bulletin 2013 – 2015. Ordinary Least Squares regression technique with the aid of SPSS 22 was employed and findings revealed that capital market has positive significant impact on Nigerian economy; FDI in Nigeria have significant impact on economic growth and that FDI enhances the capitalization of Nigerian capital market. It was recommended that Government should help improve the investment climate to attract higher FDI inflows which consequently will translate into higher gross fixed capital formation, which in turn leads to greater economic growth.

Keywords: FDI; Economy; Capital Market; Investment