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Statistical Analysis Of The Impact Of Foreign Direct Investment (fdi) On Nigeria’s Economic Growth (1980 – 2012)
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1.5 SCOPE OF THE STUDY
The
research work focused on the impact of foreign direct investment (FDI)
on the economic growth of Nigeria only, using time series data for a
period of 34 years i.e (1980 – 2013) and FDI, GDP, BOP, and EXR as
macroeconomic variable for the analysis.
1.6 LIMITATION OF THE STUDY
An academic research of this nature is bound to be constrained by a number of factors, such factors are as follows:
i. Financial constraint
ii. Time factor
In
general this study is limited in scope to Nigeria alone, as it only
focuses on the effect of foreign direct investment (FDI) on the growth
of Nigeria economy, it is also limited in temporal scope to 34 years
during the period of 1988 – 2013, the model estimated in this research
work, made use of FDI, EXR, and BOP as the only independent variables
while GDP and % of oil and gas in GDP are used as the dependent
variable. If there was enough time and resources, the researcher would
also examine the effect of FDI on economy of other nations of the world
in other to have a cross country analysis.
1.7 RESEARCH HYPOTHESES
The
main argument of the study here was synthesized into the following
hypotheses and the analysis was carried out based on them:
Hypothesis 1
H0: Foreign direct investment (FDI) has no significant impact on the growth of Nigeria economy.
H1: Foreign direct investment (FDI) has relative impact on the growth of the Nigeria economy.
Hypothesis 2
H0:
The level of balance of payment (BOP) Interest rate (INTR) and exchange
rate (EXR) have no significant impact on the growth of the economy.
H1:
The level of balance of payment (BOP) interest rate (INTR) and exchange
rate (EXR) have relative impact on the development of the Nigerian
economy.
1.8 Definition of Terms
1.8.1 Foreign Direct
Investment (FDI): Foreign direct investment is described as investment
made so as to acquire lasting management interest for example 10% equity
share in an enterprise operating in another country other than the
investors country (Mwilliama, 2003).
1.7.2 Gross Domestic Product
(GDP): Gross domestic product is the total value of all final goods and
services produced in a country in a given year.
1.7.3 Balance of Payment (BOP): It is a record of transaction between residents of a country and the rest of the world.
1.7.4 Exchange Rate (EXR): It is the charge for exchanging currency of one country for the currency of another.
1.7.4
Interest Rate (INTR): Interest rate is the rate at which interest is
paid by borrowers (debtors) for the use of money that they borrow from
lenders (creditors).
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ABSRACT - [ Total Page(s): 1 ]This research examined the impact of foreign direct investment (FDI) on the growth of Nigeria economy. According to (UNCTAD 2012) Nigeria received a net inflow of US$85.73. Unlike other studies this research extended the period of investigation to 2013 given that the Nigeria economic environment under investigation most likely has changed over the years.The research employed ordinary least square (OLS) regression technique to analyze the time series data from 1980 – 2013, GDP and CPNG whe ... Continue reading---
