J. N. Mojekwu,Samson Ogege*2
The research paper is sets out to examine the impact of foreign direct investment on Nigeria economic growth and development. It specifically seeks to ascertain to examine the nature, trend and sectoria lnflow of Foreign Direct Investment in relation to the economic growth in Nigeria and identify the impact of FDI on some macro-economic indicators. Data for the study were extracted from Central Bank of Nigeria’s Statistical Bulletin volume 18, (2009) during the period 1970-2010 . The co-integration and error correction model were used to test the long-run relationship between the dependent and independent variables the ADF and PP was used in testing for the unit root. The results revealed that there exist a long-run relationship between the dependent and the explanatory variables. The results conform to the economic a priori expectation. Finding shows that Gross Capital Formation has a positive and significant relationship with the economic growth. Based, on the findings of this research, we therefore, recommended that capital formation encourages economic growth via savings accumulation visa vise, increase in the gross domestic investment. Also, there is need for constructive attention to be given to provision of needed infrastructure, especially power generation and distribution, to enhance economic growth and development.
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