The Impact of Foreign Direct Investment on Economic Growth and Development (1980-2010)

Abstract

The study examines the impact of foreign direct investment on the economic growth and development in Nigeria from 1980-2012. The study employed the use ordinary least square techniques (OLS) which also employs secondary data obtained from central bank of Nigeria (CBN) statistical bulletin and federal office of statistics (FOS). The main findings from the sample model revealed that there is a relationship between the variables under study which was identified together with the impact of foreign direct investment, its contributions and limitations to economic growth and development in Nigeria. The model also suggests a positive linear relationship among the foreign direct investment, exchange rate and the gross domestic product (GDP), but a negative linear relationship between the inflation rate and the gross domestic product. Finally it is recommended that foreign direct investment should be encouraged in Nigeria in order to promote economic growth and development in the country.