Published Paper Details:

The study investigates the impact of foreign direct investment on industrial output in Nigeria from 1981 to 2018. Specifically, the study was carried out to specifically to ascertain the extent to which financial institutions and institutional quality aid FDI inflow in Nigeria and to evaluate the effect of FDI on domestic investment in Nigeria. To achieve these objectives, the study specified three different models with various independent variables. It employed the Augmented Dickey-Fuller (ADF) and Philips-Perron unit root tests, Engle-Granger two step approach and error correction mechanism which minimize the possibility of estimating spurious relations while at the same time, retaining long run information. Amongst other findings, the research findings revealed that foreign direct investment had an insignificant positive impact on industrial growth in Nigeria. Also, financial institutions (proxied by credit to private sector) had no significant impact on foreign direct investment in Nigeria. More so, institutional quality (proxied by corruption perception index) had an insignificant effect on foreign direct investment in Nigeria. Again, foreign direct investment had an insignificant negative impact on domestic investment (proxied by gross national private capital formation) in Nigeria. The study recommends, among other things, that the government should, through the Ministry of Trade and Investment enact and reform extant laws and policies that could boost the ease of doing business index for Nigeria. This could be done by reinvigorating investment attracting mechanisms in the less invested sectors of the economy such as the mining and quarrying sector.