THE ACCOUNTING PERSPECTIVE OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS (1986-2011)

Abstract

The purpose of this research study is to examine the accounting perspective of foreign direct investment on economic growth in Nigeria. It is the aim of this research to examine the relationship existing between foreign direct investment and some macro economic variable in the Nigerian economy for the period 1986 – 2011. Descriptive analytical design compiled with the test of hypothesis was the method adopted by the researcher. Data were collected mainly from secondary records and library research using ordinary least square to analyze the data collected. However, from the analysis of data, it was discovered that, with the exception of labour forced employment, gross domestic product, openness of the economy and an over valued exchange rate explain to a large extent, the variations foreign direct investment inflow within the period. This implies that the government must create an enabling environment and also put in place appropriate and effective policies and strategies to manage these variables for purpose of attracting, absorbing and sustaining substantial inflow of FDI into the Nigerian economy.

Keywords: Foreign Private Investment, Exchange Rate, Balance of Payment, Gross National Savings, Foreign Direct Investment