KOGI STATE

Faculty of Management Sciences

Journal of MANAGEMENT

ISSN: 3212 - 3122

Okeke Damian Chibuike; Anochie Uzoma C. PhD. & Ijoma Benjamin Chinedu

Abstract

The study investigated the impact of foreign direct investment (FDI) on economic growth of Nigerian from 1988 to 2023. The objective of the study was to examine the impact of foreign direct investment and domestic investment measured by gross fixed capital formation (GFCF) on economic growth of Nigeria. A long-run relationship between the variables was confirmed by the unit root test, which was used in the study. The co-integration test and the error correction model (ECM) were used in the data analysis. The results of the ECM indicated that the coefficient values for GFCF and LFDI are 0.077662 and 0.27282, with corresponding critical values of 0.27282 and 2.65898. This suggests that FDI has a positive and significant impact on economic growth, while GFCF has a positive and insignificant impact on Nigeria's economic growth during the review period. Hence, the report recommended that government should reinforce existing policies and plan on investment to attract more foreign direct investment and promote local businesses in Nigeria.

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Keywords

Foreign direct investment, economic growth, domestic investment

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