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Foreign Direct Investment and Employment Generation in Nigeria

Author

Listed:
  • Chinwe Ann Anisiobi

    (Department of Economics, Nnamdi Azikiwe University Awka, Nigeria)

  • Callistus Tabansi Okeke

    (Department of Economics, Nnamdi Azikiwe University Awka, Nigeria)

  • Chinwe Monica Madueke

    (Department of Economics, Nnamdi Azikiwe University Awka, Nigeria)

Abstract

FDI as a growth stimulating factor is seen as the largest source of external financing to developing countries and helps to ease capital constraints and contributes to output and employment generation. This paper examined the impact of foreign direct investment on employment generation in Nigeria within the period 1991 to 2021. The variables used in the study include employment rate, foreign direct investment, trade openness and real exchange rate. The paper used the autoregressive distributed lag (ARDL) model for its regression analysis. The data for the analysis was sourced from CBN statistical bulletin and world bank development indicator. The study finds that foreign direct investment and Trade openness have a positive impact on employment generation in Nigeria. Real exchange rate has a negative impact on employment generation in Nigeria. The paper finds that a short run relationship exists between foreign direct investment, real exchange rate, trade openness and employment generation in Nigeria. Based on the findings, the paper recommends that Government should make effort to attract more Foreign Direct Investment into the country to create more employment opportunities through Multi-National Corporations. The Government should encourage trade openness in order to enhance more Foreign Direct Investment in the country as it will increase the standard of living of the citizens by the provision of highly paid employment.

Suggested Citation

  • Chinwe Ann Anisiobi & Callistus Tabansi Okeke & Chinwe Monica Madueke, 2022. "Foreign Direct Investment and Employment Generation in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 155-160, November.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:11:p:155-160
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    References listed on IDEAS

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    1. Gohou, Gaston & Soumaré, Issouf, 2012. "Does Foreign Direct Investment Reduce Poverty in Africa and are There Regional Differences?," World Development, Elsevier, vol. 40(1), pages 75-95.
    2. Babajide Fowowe & Mohammed Shuaibu, 2014. "Is foreign direct investment good for the poor? New evidence from African countries," Economic Change and Restructuring, Springer, vol. 47(4), pages 321-339, November.
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