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Impact of foreign direct investment in the economic development of Nigeria
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The study analyzed the impact of Foreign Direct Investment (FDI) on Nigeria’s economic growth over the period of 1987 – 2017. The main type of data used in this study is secondary sourced from various publications of Central Bank of Nigeria, such as Statistical Bulletin, Annual Reports and Statement of Accounts. The regression analysis of the ordinary least square (OLS) is the estimation technique that is being employed in this study to determine the relationship between and impact of the Direct Foreign Investment on economic growth. The findings revealed that economic growth is directly related to the inflow of foreign direct investment and it is also statistically significant at a 5% level which implies that a good performance of the economy is a positive signal for inflow of foreign direct investment. This implies that foreign direct investment is an engine of economic growth. The paper recommended that the government should liberalize the foreign sector in Nigeria so that all barriers to trade such as arbitrary tariffs import and export duties and other levies should be reduced so as to encourage investors. Keywords: Foreign Direct Investment, Economic Growth, OLS, CBN, Nigeria