Data used for this study were sourced from annual accounts. Pdf this paper empirically examines the effects of foreign direct investment fdi on economic growth in nigeria. Promoting and facilitating technology transfer through foreign direct investment fdi has assumed a prominent place in the. The research developed a structural macroeconometric model consisting of four blocks made up of supply, private demand, government and external sectors. Pdf foreign direct investment and economic growth in nigeria. Foreign direct investment, export and economic growth in. Impact of domestic investment on economic growth of nigeria with references. For nigeria, meaningful, longlasting economic growth and development is almost entirely contingent upon securing substantial amounts of foreign direct investment. Foreign direct investment fdi is argued to play a pivotal role in accelerating economic growth eg of a host country especially in developing and. Foreign direct investment and economic growth in nigeria initially, successive governments placed restrictions on foreign direct investment because to them, fdi is a vehicle for political and economic dominance. Pdf the paper investigated foreign direct investment impact on economic growth in nigeria using annual data for 1981 to 2016, from cbn statistical.
A multivariate regression approach was employed to estimate augmented growth models. Impact of foreign direct investment on nigerias economy. Also, olokoyo, 2012 used the ols regression technique to examine the impact of foreign direct investment on economic growth in nigeria from 1970 to 2007. It is against this backdrop that this study examined the effect of foreign direct investment on economic growth in nigeria. This period was chosen to sufficiently determine the long run impact of fdi on economic growth. This page provides nigeria foreign direct investment. A growth model via the ordinary least square method was used to ascertain the relationship between fdi and economic growth in nigeria. Foreign direct investment, export and economic growth in nigeria oyatoye, e. The ecm results show that both private capital and lagged foreign capital have small, and not a statistically significant effect, on the economic growth. Is in need of foreign direct investment as a verifiable boaster of the nigerian economy while others are of the view that foreign direct investment is a form of neo colonialism to what extent. The impact of foreign direct investment on nigeria economic growth 19812016 pdf will be the focus of this research. While some researchers suggest a positive effect, others found a negative effect. The impact of foreign direct investment fdi on the.
Liu, burridge, and sinclair found a twoway relationship between fdi and economic growth 8. Determinants of economic growth in nigeria kazeem b. The research thus suggested that in order for her to improve the economic climate for foreign direct investment in nigeria, the government must appreciate the fact that the basic element in any successful development strategy should be the encouragement of. The study analyzed the impact of foreign direct investment on nigeria economic growth over the period of 1999 20. This study investigates the empirical relationship between foreign direct investment and economic growth in nigeria. Promoting and facilitating technology transfer through foreign direct investment fdi has assumed a prominent place in the strategies of economic revival and growth. This is so given that foreign investment remains the sure way of economic growth. Pdf on oct 24, 2018, rita anekwe and others published foreign direct investment and economic growth in nigeria find, read and cite all. A growth model via the ordinary least square method was used to ascertain the relationship between. The impact of foreign direct investment on the nigerian economy.
And ascertain the direction of causality between foreign direct investment fdi and economic growth in nigeria. Foreign direct investment is assumed to benefit a developing country like nigeria, not only by supplementing domestic investment, but also in. Introduction the idea of foreign direct investment fdi and trade is an old phenomenon. There have been controversies regarding the effect of foreign direct investment on the growth of the host countrys economy. The relationship between foreign direct investment and economic. A growth model via the ordinary least square method was used to ascertain the relationship between fdi. Toexamine the relationship between foreign direct investment fdi and economic growth, ii.
Foreign direct investment and economic growth in ecowas. This study believes that using a more robust estimation technique dynamic ordinary least squares which incorporates endogeneity and autocorrelation may yield more reliable result. Impact of foreign direct investment on nigeria economic. The impact of foreign direct investment on economic growth.
This research work focuses on fdi and the economic growth in nigeria and covers a period of time between 19802010. Impact of foreign direct investment and trade on economic. To examine the trend of foreign direct investment in nigeria scope of the study in measuring growth, most studies identify. Most countries strive to attract foreign direct investment fdi because of its acknowledged advantages as a tool of economic development. Foreign direct investments and economic growth in nigeria. Organization for economic cooperation and development countries. Akinlo 2004 also investigated the impact of foreign direct investment fdi on economic growth in. National policies and the international investment architecture. Foreign direct investment in nigeria increased by 909. Effect of foreign direct investment and economic growth in nigeria. Impact of domestic investment on economic growth of nigeria. Impact of foreign direct investment and trade on economic growth foreign direct investment fdi and trade are often seen as important catalysts for economic growth in the developing countries.
The research developed a structural macroeconometric model consisting of four blocks made up of supply, private demand,government and. This was made clear by the local policy to regulate foreign direct investment that led to the promulgation of the decree on nigeria. The main type of data used in this study is secondary. Evidence from nigeria article pdf available in international journal of business and management 73. The impact of foreign direct investment on nigeria economic growth 1980 2010 abstract. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Statistical bulletin, annual reports and statement of accounts. Article pdf available january 2014 with 11,174 reads how we measure reads. Descriptive and regression analyses were used as the estimation. The regression analysis of the ordinary least square ols. Considering the various critisism of empirical studies on how foreign direct investment in nigeria affects its economic growth, there is need for further studies to be carried out on how fdi affects the economic growth of the nigeria after the financial crisis.
The work covered a period of 19812009 using an annual data from central bank of nigeria statistical bulletin. Fdi is an important vehicle of technology transfer from developed countries to developing countries. Sectoral analysis of south africa by kgomotso charlotte nchoe submitted in accordance with the requirements for the degree of master of commerce in the subject economics at the university of south africa supervisor. The study analyzed the impact of foreign direct investment on nigeria economic growth over the period of 199920.
The study examined the impact of foreign direct investment fdi in nigeria over the period 1980 to 2010. Examine the challenges of foreign direct investment in nigeria, research hypothesis h 0. Effect of foreign direct investment on economic growth in. The impacts of domestic and foreign direct investments on.
Nbs, pwc analysis exports are likely to outpace imports on strong oil export revenues and shrinking import demand real gdp growth to reach 2. Foreign direct investment fdi is an integral part of an open and effective international economic system and a major catalyst to development. Exchange rate has no significant impact on foreign direct investment h 0. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Impact of foreign direct investment fdi on the growth of. Foreign direct investment and economic growth in nigeria 65. It is, therefore, necessary to investigate holistically domestic investment, and economic growth in nigeria between the periods of 19802016. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Fdi, as it is called, is crucial for the nigerian economy, as it permits the transfer of technology and facilitates improvements in productivity. This study investigated the impact of foreign direct investment on economic growth in nigeria.
Yet, the benefits of fdi do not accrue automatically and evenly across countries, sectors and local communities. Foreign direct investment fdi and nigerian economic growth. Nigeria foreign direct investment 20072019 data 2020. In other hand, ayanwale noted that the relationship between foreign direct investment and economic growth is not so clear 9. This study investigates the empirical relationship between foreign direct investment and economic growth in. This study investigates the impact of fdi on economic growth. The impact of foreign direct investment on economic growth in nigeria.
Pdf the impact of foreign direct investment on economic growth. The undeveloped countries like nigeria suffer not only from low income and unstable growth, but also from regional disequilibrium, economic instability unemployment, depending on foreign countries, specialization in the production of raw materials and economic, social, political and cultural marginality. Impact of foreign direct investment on nigeria economic growth. Wang found that fdi contribute to economic growth 7. Pdf the impact of foreign direct investment on economic. 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. This study examined the influence of foreign direct investment and exchange rate on economic growth in nigeria from 1971 to 20. Foreign direct investment and economic growth in nigeria economics project topics a research work is an assignment of fdi and economic growth in nigeria. The impact of foreign direct investment on the nigerian. Economic growth gets a boost from high oil prices nigeria.
Examine the negative effects of excessive reliance on foreign direct investment, iii. Foreign direct investment and economic growth in nigeria. This paper examined the effects of foreign direct investment fdi on the development of nigerian economy. The study employed trend lines and percentage to analysis the. The study employed multiple regressions in analysis, using the ordinary least square ols regression technique. Foreign direct investment in nigeria dartmouth business.
The impact of foreign direct investment on nigeria. Get free research paper on the role of foreign direct investment on economic growth in nigeriaproject topics and materials in nigeria. This paper attempts to investigate the impact of foreign direct investment fdi on economic growth in nigeria. The results of garba 1997s study on direct foreign investment and economic growth in nigeria for the period 19701994 show that the coefficient of fdi was. Foreign direct investment and economic gro wth in nigeria. Abstract this study examines the possible impact and relationship between foreign direct investment, and economic growth in nigeria. The results show that fdi is an engine of growth in nigeria. Government expenditure and economic growth in nigeria.