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THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA

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ABSTRACT

Foreign DirectInvestmenthas been widely described as anindispensablevehicleofeconomicgrowth,Variousresearchershave tried to advocateforeign direct investment as a tool for employment generation, transfer of technological skills, manpower development and increased foreignexchangeearnings.

This study was carried out to determine the impact of FDI on economic growth in Nigeria. The study made use of the ordinary least square OLS method of estimation indeterminingthe impact of FDI amid other variables on economic growth from theperiod of 1980 2010. This study further reveals that inflation rate have a negative influence on economic growth.Recommendationbased on the findings made aregeared towards a restructuring and redirecting of foreign direct investment if successfully put in place would yeild great benefits to economic growth in Nigeria.

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