Foreign Direct Investment and Poverty in Nigeria
DOI:
https://doi.org/10.55980/ebasr.v3i1.110Keywords:
Foreign Direct Investment, Poverty, Agricultural Sector, Manufacturing Sector, Service SectorAbstract
Using yearly data series spanning 41 years, from 1981 to 2021, the research empirically evaluates the influence of FDI on poverty in Nigeria. The study's dependent variable was the poverty rate (PVT), while the independent variable were foriegn direct investment (FDI) into agriculture (FDI), manufacturing (FDIM), services (FDIS), trade openness (OPN), and the exchange rate (EXR). Statistical tools such as descriptive analysis, unit root testing, and ECM modelling were used to access date that was received from secondary sour. Foriegn Direct Investment (FDI) in the agriculture sector decreases the poverty rate, FDIM in the manufacturing sector increases the poverty rate, FDIS in the service sector increases the poverty rate. OPN decreases the poverty rate, and EXR increases the poverty rate in Nigeria, according to the ECM. Foriegn Direct Investment (FDI) did not alleviate poverty in Nigeria during the research poriod the study found. The research concludes that foriegn direct investment (FDI) may help Nigeria's economy and alleviate poverty if the government takes steps to attract FDI, such as lowering taxes, subsidizing infrastructure and eliminate import duties.
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