TITLE:
The Impact of Foreign Direct Investment on Economic Growth: Nigeria Experience
AUTHORS:
Kolade Omoniyi Alabi
KEYWORDS:
FDI, Economic Growth, Exchange Rate and Domestic Investment
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.9 No.5,
May
27,
2019
ABSTRACT: This study investigated the impact of foreign direct investment on
economic growth in Nigeria. Secondary source of data was employed in this study
from 1986 to 2017 which were sourced from Central Bank of Nigeria Statistical
Bulletin (2017) published in 2018 and World Development Indicator published in
2019. Descriptive and regression analyses were used as the estimation
techniques. The findings of the study revealed that the coefficient value of
LFDI is 0.633506 and its p-value is 0.0002 implying that a unit increase in
LFDI will increase LGDP with the value of 0.633506. The coefficient value of
RINTR is 0.004127 with p-value of 0.310 indicating that a unit increase in real
interest rate will increase gross domestic product, but it is not significant.
Also, LDI coefficient value is 1.758036 with p-value of 0.0688 implying that a
unit increase in domestic investment will increase gross domestic product
positively with the value of 1.758036 which is significant at 10% but not
significant at 5% alpha level. The coefficient value of exchange rate is
0.835206 with the p-value of 0.0000 signifying that exchange rate is positive
and significant to economic growth. It was concluded that foreign direct
investment was positive and significant to economic growth of Nigeria while the
domestic investment was also positive but not significant at 5% alpha level.