Impact of Foreign Direct Investment on Unemployment rate in Nigeria (1980-2015)

Abstract

The study examined the impact of foreign direct investment on unemployment rate in Nigeria from 1980 to 2015. The study used two explanatory variables (foreign direct investment and capital formation) and one explained variable (unemployment rate). Test carried out include unit root test, co-integration test, and ordinary least square. The study revealed that: There is negative and insignificant relationship between foreign direct investment and unemployment rate in Nigeria, there is positive and significant relationship between capital formation and unemployment rate in Nigeria. Based on the findings, the study recommends that, government should implement policies that will attract foreign investors to Nigeria in order to make more investments and should also ensure that all resources for productive activities are fully employed before going into any form of savings.