Impact of foreign direct investment inflows on economic growth in Nigeria

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the effect of foreign direct investment (FDI) inflows on economic growth in Nigeria from 2010 to 2019. Using the ordinary least square regression methodology, the findings reveal that foreign direct investment inflows do not have a significant effect on economic growth in Nigeria. The result holds when different measures of economic growth and different measures of foreign direct investment inflows are employed. Meanwhile, population size, real interest rate, domestic private credit and the inflation rate are significant determinants of economic growth in Nigeria while gross capital formation is an insignificant determinant of economic growth in Nigeria. The implication of the findings is that policy makers in Nigeria should focus on other drivers of economic growth other than foreign direct investment inflows when developing policy initiatives to stimulate economic growth in Nigeria.

Keywords: Nigeria; foreign direct investment; economic growth; gross capital formation; GDP; inflation; domestic private credit; population; interest rate; GDP growth (search for similar items in EconPapers)
JEL-codes: F13 F18 F31 F38 O47 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-fdg, nep-int, nep-ipr and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:122167

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