Assessment of the Impact of Foreign Direct Investment (FDI) Inflow on the Economic Development of Nigeria (2010-2023)

Authors: Okechukwu Cajetan ONWULIRI (Ph.D) (Management& Social Sciences Division, Polytechnic Programmes Department, National Board for Technical Education (NBTE), Kaduna, Nigeria),. , Emmanuel Obiora NWAKEZE (Accountancy Department, School of Management Sciences, Grundtvig Polytechnic, Oba, Anambra State, Nigeria), Okorie, Chineme IJEOMA (Department of Mathematical Sciences, Faculty of Science Nigerian Defence Academy, Kaduna, Nigeria).

Journal:Nigerian Of Technical Education | Volume: 24 | Issue: 1 | Pages: 151 - 157

Keywords: Foreign Direct Investment, Gross Domestic Products, Economic Growth, Economic Development, Inflation Rate, Government Expenditure, Exchange Rate, Trade Openness, Poverty Reduction, Infrastructure Development, Sectoral Performance.

Abstract

Foreign Direct Investment (FDI) has been argued in literature to be a one of the pertinent contributor to economic development of a country like Nigeria. However, the slow-paced development and increasing poverty of its citizen despite the country’s level Foreign Direct Investment (FDI) have warranted some to question its efficacy in practice. This explain why the main objective of study is to assess the impact of FDI on the real-time economic development of Nigeria for the period 2010 – 2023. This methodology employs a quantitative research design, using secondary sources, and applies various statistical techniques (such as regression and econometric models) to analyze the impact of FDI on Nigeria's economic. development. GDP Growth Rate was the dependent variable that measured economic development viz-a-viz, Economic Growth, Poverty Reduction, Infrastructure Development, and Sectoral Performance; FDI Inflow (XF) represented the independent variable; and Inflation Rate, Government Expenditure, Exchange Rate, and Trade Openness were the major control variables. From the regression results, it was found that FDI have a significant and positive impact on GDP growth rate of Nigeria, controlling for other macroeconomic variables. However, the impact is relatively small compared to other variables like government expenditure and trade openness. Additionally, it suggested that inflation rate has a negative impact on GDP growth rate, whereas exchange rate has recorded an insignificant impact. Sequel from this findings, the study concluded that FDI significantly impact Nigeria's development economy.