Effect of Foreign Direct Investment on Economic Development in Nigeria

Abstract

This study aims to check the economic development of Nigeria staring for thirty-three years (from 1986 up to 2018) to find the impact of foreign direct investment. The impact of inflation, exchange rate and interest rate on economic growth also has been evaluated. The real gross domestic products, foreign direct investment, domestic investment, inflation, exchange rate and interest rate were obtained from CBN Statistical Bulletin. Regression analysis has been performed on the annual time series data. Foreign direct investment (FDI) found to play positive and significant effect on the FDI in Nigeria. Exchange rate played insignificant role and inflation and interest rate are found to significantly and negatively associated with Nigerian economic development. This study suggested a proper implementation of policies and collaboration between the government and the private sector to influence capital investment in the economy.