Effect of Foreign Direct Investment on Economic Growth: The Nigeria Perspective

Abstract

This study examined the effect of foreign direct investment on economic growth with specific reference in the Nigerian economy with exchange rate as an additional explanatory variable, among others. Multiple regression analysis technique was employed in estimating the model. The data used for the study were extracted from the Central Bank of Nigeria statistical bulletin from 1980 – 2012. The results of the study revealed that foreign direct investment has a positive relationship with Nigerian economic growth. The same positive relationship also exists between exchange rate and Nigerian economic growth. It was recommended among other things that the aspect of foreign direct investment which encourages transfer of technology be encouraged into the country.

Keywords: Foreign Direct Investment, Exchange rate, Economic Growth, Nigeria