Foreign Direct Investment And Nigeria Economy Essay
The study examined the effect of Foreign Direct Investment (FDI) on the Nigeria economy. Secondary data were collected through extraction from the Central Bank of Nigeria’s statistical bulletins. The data collected covered 14years (2000 – 2013) which encompassed Foreign Direct Investment (FDI) and Foreign Reserves (FR) (as independent variables) and Gross Domestic Product (GDP) (as the dependent variable) signifying the Nigeria economy. The data were analysed through the use of linear regression and correlation techniques. The formulated hypotheses were tested with the use of t-test and F-ratio. Findings suggest that the independent variables (FDI and FR) have positive impact on the independent variable (GDP). This means that any increase in FDI or FR will have a commensurable increase in the GDP and vice versa. It was therefore recommended that sustainable reforms like the National Economic Empowerment Development Strategy (NEEDS) should be a continuous policy in Nigeria and the government should fix the dilapidated infrastructure in the country in order to bring home more investors. It was also suggested that the economy should be made more secured for lives and property. All these will go a long way to boost the FDI and in turn boost the GDP of Nigeria.
Keywords: Foreign Direct Investment, Foreign Exchange, Foreign Reserves, Investors, Infrastructure.
It is a known…