THE EFFECT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

The study examined the effect of Foreign Direct Investment (FDI) on development in Nigeria. The ultimate goal of developing countries is to attain development. Most studies on the effect of Foreign Direct Investment on the development of the Nigerian economy used growth proxied by GPP as a measure of development. This study however uses the Human Development Index (HDI) which is a complementary measure of development as it considers the three aspect of development (health, knowledge and standard of living). Current data from secondary data source. were used Secondary data were collected and OLS estimation method was used for the analysis of data. The result shows that the stock of FDI inflow has a positive and statistically significant effect on Economic development in Nigeria. Therefore to experience sustainable development, government should aim at providing infrastructure and conducive trade and investment environment for both foreign and local investors.