On whether foreign direct investment catalyzes economic development in Nigeria

Godwin Okpara

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigated the impact of Foreign Direct Investment on some selected macro-economic variables such as real GDP, gross fixed capital formation and unemployment. Data for the variables were sourced from the Central Bank of Nigeria’s Statistical Bulletin. For the assessment of this impact, the author used co-integration and error correction model to arrive at a parsimonious result which revealed that foreign direct investment though impacts positively and significantly on the gross fixed capital formation and the real GDP, has not made any positive and significant impact on the reduction of unemployment in Nigeria. The researcher therefore calls for putting in order the Country’s social, political and economic environment for foreign investment to yield dividends that will be enormous enough as to significantly reduce unemployment and engender instant growth on real GDP.

Keywords: foreign direct investment; economic growth; unemployment rate; co-integration; vector error correction model (search for similar items in EconPapers)
JEL-codes: B22 C01 C12 C13 C22 C32 C87 E22 F21 J21 (search for similar items in EconPapers)
Date: 2012-01-27, Revised 2012-01-27
New Economics Papers: this item is included in nep-afr and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36319

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