An assessment of the impact of foreign direct investment on nigerian ecconmic growth (1990-2011)

Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been a significant source of external finance for developing countries like Nigeria. This study aims to assess the impact of FDI on the economic growth of Nigeria from 1990 to 2011. The research employs a quantitative research design utilizing secondary data collected from the World Bank and the Central Bank of Nigeria. The data is analyzed using econometric techniques such as the Autoregressive Distributed Lag (ARDL) approach to cointegration and Vector Error Correction Model (VECM). The results of the study indicate a positive and statistically significant relationship between FDI and economic growth in Nigeria over the period under consideration. The findings suggest that FDI inflows have had a stimulating effect on the Nigerian economy, leading to increased GDP growth rates. The study also reveals that FDI has contributed to technology transfer, human capital development, and increased productivity in various sectors of the Nigerian economy. Furthermore, the research highlights the importance of creating a conducive investment climate and implementing policies that attract and retain FDI inflows. It underscores the need for stable political and economic environments, infrastructure development, and institutional reforms to maximize the benefits of FDI on economic growth. The study recommends that the Nigerian government continue to pursue policies that promote FDI inflows, including tax incentives, investment guarantees, and streamlined regulatory procedures. In conclusion, the findings of this research support the argument that FDI plays a crucial role in driving economic growth in Nigeria. The study contributes to the existing literature by providing empirical evidence of the positive impact of FDI on the Nigerian economy. It also offers valuable insights for policymakers, investors, and other stakeholders on the strategies needed to harness the full potential of FDI for sustainable economic development. Further research could explore the sectoral impact of FDI, the quality of FDI inflows, and the long-term implications of FDI on income distribution and poverty alleviation in Nigeria.