Foreign Direct Investment

Foreign Direct Investment, Export and Economic Growth in Nigeria

Oyatoye, E. O.* Adebisi, S. O‡ Arogundade, K. K† Oluwakayode, E. F.§

* †

[Department of Business Administration, University of Lagos, Nigeria] [Corresponding Author], [Department of Business Administration, University of Ado Ekiti, Nigeria], [karog77@yahoo.co.uk], [+2348062655555] ‡ [Department of Business Administration, University of Ado Ekiti, Nigeria] § [Department of Accounting, University of Ado Ekiti, Nigeria]

© JournalsBank.com (2011).

ISSN 2220-9425 66

European Journal of Humanities and Social Sciences Vol. 2, No.1 (2011)

Foreign Direct Investment, Export and Economic Growth in Nigeria**

Oyatoye, E. O., Arogundade, K. K, Adebisi, S. O & Oluwakayode, E. F.

Abstract This study examines the possible impact and relationship between Foreign Direct Investment, and Economic Growth in Nigeria. Data used for this study were sourced from annual accounts and statistical bulletin of the Central Bank of Nigeria (CBN). The scope cover a period of 20 years (1987 – 2006) both years inclusive. Regression analysis of ordinary Least Square ((OLS) was used in analysing the data. The study concluded that there is a positive relationship between direct foreign investment and gross domestic product (GDP). The result further showed that one naira increase in the value of direct foreign investment (DFI) will lead to N104.749 increase in GDP. The value of co-efficient of determination (r2) is 18.5%, showing that only 18.5% change in GDP has been explained by DFI while the remaining 81.5% is unexplained by the model. This supports a positive relationship between GDP and DFI.

Keywords: foreign direct investment, export, economic growth, gross domestic product.

Acknowledgment Nil

**

© JournalsBank.com (2011).

ISSN 2220-9425 67

European Journal of Humanities and Social Sciences Vol. 2, No.1 (2011) I. Introduction

Kumar (2007), described Direct Foreign Investment (DFI) in...