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THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA

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ABSTRACT

Foreign Direct Investment has been widely described as an indispensable vehicle of economic growth, Various researchers have tried to advocate foreign direct investment as a tool for employment generation, transfer of technological skills, manpower development and increased foreign exchange earnings.

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 in determining the impact of FDI amid other variables on economic growth from the period of 1980 2010. This study further reveals that inflation rate have a negative influence on economic growth. Recommendation based on the findings made are geared towards a restructuring and redirecting of foreign direct investment if successfully put in place would yield great benefits to economic growth in Nigeria.

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