The Impact of FDI on Nigeria's Economic Growth: Trade Policy Matters
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Journal of Business and Policy Research
This study is an attempt to provide evidence on the effect of trade policy regime on Foreign Direct Investment (FDI) contribution to economic growth performance in Nigeria, using an annual data for the period, 1970-2004. The paper presents an empirical model in the form of a growth equation, which captures the impact of FDI interactively with trade openness on economic growth. The econometric evidence obtained from the study strongly support the Bhagwati's hypothesis that an export promotion trade regime is more conducive compared to an import-substitution regime in generating favourable effect of FOI for the host countries. The study strongly supports trade liberalization and investment regimes. The challenge ahead of Nigerian government therefore is to exercise caution in the design of policy measures to enhance liberal policy regime and trade that will enhance economic growth.
Trade policy , Foreign Direct Investment (FDI) , Economic growth , Trade liberalization
Dauda, R. O. S. (2007)The Impact of FDI on Nigeria's Economic Growth: Trade Policy Matters. Journal of Business and Policy Research. Vol.3 No.2 Nov-Dec, Pp.11-26