FDI and Economic Growth in Nigeria: A Co-integration Analysis

摘要

This paper establishes an empirical relationship between foreign direct investment (FDI) and economic growth in Nigeria under the framework of cointegration analysis over the period 1970-2010. The econometric evidence from the Engle Granger cointegration tests suggests that there is no long-run relationship between FDI and economic growth in Nigeria. However, there is a short-run dynamic relationship between FDI and economic growth. And finally the study concluded that, for the achievement of a long-run relationship between FDI and economic growth in Nigeria, there is a need to improve the business environment, with the provision of necessary infrastructure and political stability in the country.