Foreign Direct Investment, Agricultural Performance and Economic Development in Nigeria

Abstract

This study examined foreign direct investment, agricultural performance and economic development in Nigeria from 1982 to 2022. The study objectives were achieved by analyzing annual time series data sourced from the World Development Indicators and United Nations Development Program.  Relevant descriptive and econometric analyses were employed. The econometric tests used include the unit root tests, and Auto-Regressive Distributed Lag (ARDL) techniques for both the short run and the long run. The result revealed that foreign direct investment has an insignificant negative effect on economic development, while agricultural performance has a significant positive effect on economic development. The long run result showed that there is a positive and significant relationship between agricultural performance and economic development. There is a positive relationship between foreign direct investment and economic development at the long run. The study therefore concluded that agricultural performance is a catalyst for economic development because it has a positive and significant relationship. In view of these findings, the study recommended, amongst others, that it was necessary for the government of Nigeria to improve on agricultural performance and funding in order to achieve economic development. Also, the study encourage Nigerian government to put more foreign direct investment inflows into the real sector (Agriculture), so that the economy can feel the impacts more significantly.