The Effect of Exchange Rate and Inflation on Foreign Direct Investment and Its Relationship with Economic Growth in Nigeria
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This study is on the effect of exchange rate and inflation on foreign direct investment and
its relationship with economic growth. Its main objective is to find the effect of inflation and
exchange rate and the bidirectional influences between FDI and economic growth in
Nigeria. A thirty year period was studied. A linear regression analysis was used on the
thirty year data to determine the relationship between inflation, exchange rate, FDI inflows
and economic growth. The study reveals that FDI follow economic growth occasioned by
trade openness which saw the entry of some major companies especially the
telecommunication companies, while Inflation has no effect on FDI. However exchange rate
has effect on FDI.
Keywords
HG Finance