Economic Growth through Foreign Direct Investment: Nigeria Experience

Author : 1 Chioma Oleka (Ph.d), 2 Ngozi Eyisi, Oleka (Ph.d), 3 Bassey Eyo Bassey (Ph.d)

This paper contributes to the existing literatures by applying the econometric regression model of ordinary least square in evaluating the relationship between foreign direct investment (FDI ) and economic growth in Nigeria for the periods between 1990 and 2013. The effect of FDI on the economic growth was determined using gross domestic product (GDP), per capita income and balance of payment index of capital flows as major economic performance indicators. The study found that the link between FDI and economic growth in Nigeria was significant and very strong. However, FDI was found to be related to GDP growth and balance of payment while standard of living which was proxied per capita income was found to be unrelated to FDI flows in Nigeria. The study therefore recommends that there is need for the availability of infrastructural development, improved security network, skilled manpower development, more friendly business environment, sincere leaders and technocrats to drive positive changes towards attracting FDI flows in the country.

Affiliation :

1 Department of Banking and Finance, Enugu State University of Science and Technology, Enugu State, Nigeria.
2 Department of Accountancy, University of Nigeria, Enugu Campus,  Enugu State, Nigeria.
3 Department of Accounting, University of Calabar, Cross River State, Nigeria.
 

Keywords : Balance of payment, Economic growth, Foreign direct investment. Gross domestic product, Nigeria, Percapita income
Date : Friday ,01 ,August ,2014

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