Foreign investment hinders economic growth in Nigeria, trade openness key.
The study looked at how foreign investment, aid, and trade affect Nigeria's economy. They used data from 1980 to 2015 to see how these factors impact economic growth. They found that foreign investment had a negative effect on growth, while trade openness and capital stock had positive effects. A 1% increase in foreign investment led to an 11.14% decrease in economic growth, while a 1% increase in capital stock, labor growth, and trade openness led to significant growth increases. The study also showed that there is a long-term relationship between these factors and economic growth, with a one-way causality from the factors to growth. The researchers recommend that the government improve the business environment to attract more investors and stimulate economic growth.