Abstract

The study analyses the impact of foreign direct investment (FDI) on the economic growth of Nigeria for the period 2008-2017. The R Squared and adjusted R squared are found to be 86% and 74% respectively which shows that about 86% of the variation in RGDP is being accounted for by the explanatory variables, while only about 14% account for error term in explaining the model. The implication of this result it that, the held a significant percent in explaining the fact that the independent variable considered in the model account to a large extent for the change in the dependent variable. DW Statistics is 1.81, which shows that there is no autocorrelation which means that all the OLS biases were partly addressed which gives us Best Linear Unbiased Estimator (BLUE) in the model. The global overall F-Statistical test is less than 0.000% (i.e 0.00% < 0.05%). The F statistics which captures the joint significance however showed that the variables are jointly significant (i.e 0.00 < 0.05%) at 5% significant level. The results also emphasize the need to invest in human development since growth in the GDP would be immaterial if the same does not reflect positively on the populace by translating to improved living standards which is in line with the vision 2020 that aims to transform Nigeria into a newly industrialized, middle-income country; providing a high quality of life to all its citizens by 2020, in a clean and secure environment.

Keywords: Foreign Direct Investment, Gross Domestic Product, Exchange Rate and Economic Growth