The Interactive Effect of Resource Seeking Foreign Direct Investments (RS-FDI) and Economic Growth in Nigeria: Evidence from Niger Delta

Abstract

The oil and gas sector, which is governed by the source of income, receives the majority of foreign direct investment (FDI) inflows in Nigeria. This study established that natural resources are the driving force behind MNEs' internalisation efforts in the country. As a result, the impact of resource-seeking foreign direct investments (RSFDIs) in the Niger Delta on Nigeria's economic growth was critically analysed in this study. To achieve the research goal, the study looked into how RSFDIs affect economic growth. The data for the study include RSFDI and GPD growth which was obtained from important stakeholders in the oil and gas industry in the Niger Delta. The Central Bank of Nigeria, the National Bureau of Statistics, and the World Bank provided additional important statistics. The research variables were estimated using Ordinary Least Square (multiple) regression approaches. The findings reveal that RSFDI, and GDP have a positive correlation. The connection, though, is negligible. The conclusion drawn in the research is that RSFDI has not been an effective contributor to economic growth in the Niger Delta due to profit repatriations.

Keywords: Resource Seeking FDI, Economic growth, Niger Delta , Employment and trade Theory

DOI: 10.7176/JESD/12-18-04

Publication date:September 30^th 2021