Re-examining the relationship between Foreign Direct Investment and Economic Growth in Nigeria

Abstract

This study examined the impact of foreign direct investment on Nigeria economic growth at large using time series data from World Bank Development Indicators. The research employed Auto Distributed Lag Model (ARDL) to investigate the impact of FDI on Nigeria economic growth both in the short-run and long-run. It was revealed that foreign direct investment has positive significant impact on Nigeria economic growth within the period under review. The research therefore concludes, that foreign direct investment has significant impact on Nigeria economic growth collaborating the earlier findings in theoretical and empirical literatures. The research therefore, recommends among others that Nigeria government and other West-African countries should invest more in infrastructural development and on R&D to increase the country domestic firm absorptive capacity and inflow of FDI in the country.