ABSTRACT
Most economic rationales for granting special incentives for attracting FDI are
based on the belief that FDI bridges the “idea gap” between the rich and the
poor nations in addition to the generation of technological transfers and
spillovers. Empirical Literature however finds controversial, the effect of FDI
on productivity growth.
This study is an investigation into the impact of FDI on
the Nigerian economy. Using secondary data obtained from CBN Statistical
Bulletin and National Bureau of Statistics, Ordinary Least Square regression
techniques were employed in the analysis. Major findings show that FDI has a
significant positive impact on the Nigerian economy. It is recommended among
others that government should enhance its economic climate and increase the
incentives to attracting more FDI flows to the economy. It is suggested that
further studies should explore the impact of each of the determinants of FDI on
the economy.
