The Impact of Foreign Direct Investment and International Trade on Economic Growth of Nigeria

Abstract

This study examined the impacts of foreign direct investment (FDI) and international trade on Nigeria's economic growth from an empirical perspective over the time span 1980-2025. The study relied on economic theory and models in examining the patterns of international capital flow and openness of trade. Empirically, using the Autoregressive Distributed Lag (ARDL) model, the study concludes that while FDI has a positive impact on economic growth in the long run, trade openness has mixed implications owing to structural constraints in the economy. The study recommended policy interventions in policy reform, development of infrastructure, and provision of investment-facilitative environments.