Deterministic Factors of Foreign Direct Investment Inflows and Nigeria Economy

Abstract

This study investigates the deterministic factors of Foreign Direct Investment (FDI) inflows to Nigeria economy during 1980 – 2019 using Error Correction Model (ECM). The data such as Real Gross Domestic Product (RGDP), Market Size, Availability of Natural Resources, Political Risk, Infrastructural Development, and Trade Openness were sourced from the statistical bulletin of the Central Bank of Nigeria (CBN). The result shows that Market size (at lags 2 and 3) and Trade-openness have positive but insignificant effect on RGDP in Nigeria while infrastructural developments are found to be positive and significant function of RGDP. The results also reveal that in the long-run, the available natural resources exert negative and significant impact on