IMPACT OF FOREIGN INFLOWS ON ECONOMIC GROWTH IN NIGERIA (1981-2019)

ABSTRACT

This study examined the impact of foreign inflows on economic growth in Nigeria for the period of 1981-2019. The main objective of this research work is to examine the impact of foreign inflows on economic growth in Nigeria and the specific objectives of this research work are to examine the effect of Foreign Direct Investment inflows on Economic growth in Nigeria and also the effect of Foreign Remitances on Economic growth in Nigeria. The study used Error Correction Mechanism (ECM) to examine the relationship between foreign inflows and industrialization in Nigeria. The study found that the level of gross fixed capital formation is positively related to the Real GDP and population growth is positively related to the Real GDP and secondary school enrollment is positively related to the Real GDP and foreign direct investment is negatively related to the Real GDP and foreign remittances is positively related to the and exchange rate is negatively related to the Real GDP. The study therefore recommends that need for government of Nigeria should impose a code of conduct on multinational corporation in order to curb their restrictive business practices, limit their repatriation of profits from Nigeria and ensure that significant part of their profits are re-invested into the Nigerian economy. Also, Government should open markets and allow for foreign inflows. Reduce restrictions on FDI and remittances. Provide open, transparent and dependable conditions for all kinds of firms, whether foreign or domestic, including: ease of doing business, access to imports, relatively flexible labour markets and protection of intellectual property rights.