Foreign Direct Investments and Economic Development and Growth in Nigeria

Godly Otto; Wilfred I Ukpere

Authors

Godly Otto Department of Economics Faculty of Social Sciences University of Port Harcourt
Wilfred I Ukpere Department of Industrial Psychology & People Management, Faculty of Management, University of Johannesburg, South Africa

Abstract

Developing economies are characterized by high rates of poverty, unemployment, inadequate capital, low or obsolete technology, and information gaps amongst many others. To mitigate these problems, many developing countries seek foreign direct investments. This is because such investments are believed to facilitate capital inflow, technology transfer, information flows into the host economies and thereby increase total output. Some developing countries exemplify these benefits. However, experience in many developing countries show that these expectations have not been met. In some of these countries, foreign direct investments as multinational companies have actually undermined host economies. This work examined the praxis in Nigeria over a – 41 – year period and observed that there is a positive relationship between Foreign direct investments and economic growth in Nigeria. Policies are required which will facilitate foreign direct investments into Nigerian economy especially in the non-oil sector.

DOI: 10.5901/mjss.2014.v5n2p713