Abstract
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 where used as the dependent variable, while interest rate, balance of payment, exchange rate and foreign direct investment where used as the independent variables. The unit root test showed that all the series where stationary after their first difference, and the cointegration test showed that there exist a long run relationship between the variables. The regression results revealed a positive relationship between FDI and GDP, and as well FDI and CPNG. In conclusion the research recommends that there should be provision of adequate infrastructure and good government policies that will attract more foreign investment into the country for sustainable growth and development of the economy.
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