Assessment about the Influence of Petroleum FDI on Nigerian Economic Enlargement

Abstract

FDI contributes to the industrial development of a developing country as a result of its accompanying transfer of advanced technology, human capital development and employment creation, make the local industries more competitive and promote backward and forward linkages. FDI in Nigeria is largely in the Petroleum sector. This study investigates the impression of FDI in Petroleum sector on economic enlargement in Nigeria. Having tested for stationarity of the variables of which some were found to be stationary at difference and others at first difference, to produce both long term as well as short term coefficients the Autoregressive Distributed lag Model has been applied. It has resulted 23.9% adjustment in the case of a deviation from the long run. Finally, minimum but positive influence has been observed in the area of Nigerian economic development. The recommended policies include the provision of an enabling environment, the need for investment policies that will be favorable to local investors, formulation and implementation of favorable exchange rate policies as well an improved state of infrastructures in the country amongst others.