IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 3 NO. 3 2018

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Forecasting FDI Inflows from the United States (USA) to Nigeria over Ten Years Period

Adamu Jibrilla

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Abstract

The need for a sustainable development makes several if not all countries across the globe to open their economies to foreign investors. Nigeria is not an exception in this direction, as all developing countries aim at attracting quality foreign direct investment in order supplement domestic investment and to explore the positive spill over effects associated with the investments. This study employs up-to-date data on FDI inflows from the United States to Nigeria from 1982 to 2017 sourced from the Bureau of Economic Analysis to forecast the future trend of the FDI inflows and its growth. Out -of -sample forecast has been done using the latest Excel 2016 to provide forecast for the U.S FDI to Nigeria over the next ten years. The study reveals that foreign direct investment from the U.S will maintain a slow positive upward trend with the growth rates of 2 to 3 percent over the forecast periods. The study therefore recommends that both the Government and policy makers should not only sustain the trend but to explore all necessary legal avenues to attract more FDI from U.S into various sectors that have employment and linkage potentials such as the manufacturing and agricultural sectors

keywords:

Forecast, United States, Nigeria, Foreign Direct Investment, Ten Years

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