The Impact of Foreign Direct Investments (FDIs) and Domestic Investments in Nigeria’s Economic Growth

Mbanasor Christian PhD

doi:10.56201/ijbfr.vol.11.no4.2025.pg111.129

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The Impact of Foreign Direct Investments (FDIs) and Domestic Investments in Nigeria’s Economic Growth

Mbanasor Christian PhD

Abstract

The study is on Foreign Direct Investments (FDIs) and domestic investments in Nigeria’s economic growth – A long run impact study. The problem identified that necessitates the study was that the rate of increase of FDIs had been further exacerbated by the high volatility of short- term capital flows, unpredictable aid flow and low savings. The conceptual literature review categorized and described concepts relevant to the study while outlining the relationship between Foreign Direct Investments (FDI), Domestic Investments and Economic growth. The theoretical literature review established what theories already exists, the relationship between them, to what degree the existing theories have been investigated, and developed into new hypotheses to be investigated. Empirical literature review process involves the evaluation of previous empirical studies to bring to rest a specific research issue. The research adopts an ex- post facto research design. This investigates possible cause-and-effect relationship by observing an existing condition and trying to find out possible causes. For the decision rule, in the first hypothesis, it has become apparent that the supposition contained therein should be rejected. This supports the studies carried out by Ugwuegbe, Amah & Onoh (2013). In the second hypothesis, it was decided that the null hypothesis was to be rejected as well as the foreign direct investment net outflow as a percentage of GDP was regressed against the foreign direct investment net outflow as a function of the BOP. The result was the same as hypothesis one and is consistent with the research done by Irfan Ali (2014), on Impact of Foreign Direct Investment on Volatility of Stock Market. In the third hypothesis, it was decided to accept the null hypothesis which suggested that listed domestic companies have a significant effect on the economic growth of Nigeria. This is consistent with the work of Olokoyo, Felicia Omowunmi (20

References

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The Impact of Foreign Direct Investments (FDIs) and Domestic Investments in Nigeria’s Economic Growth

Abstract

References

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