This study examines the impacts of foreign direct investment (FDI) as a proxy for Foreign Aid, alongside other critical economic and political variables, on Nigeria's economic development. Utilizing an Ordinary Least Squares (OLS) regression model from 1981 to 2022, it explores the dynamics between FDI, trade openness, unemployment rate, corruption index, inflation rate, political stability, and population growth rate in shaping Nigeria's economic growth trajectory. The findings reveal that FDI significantly contributes to economic development, while trade openness highlights the importance of a conducive external economic environment. Conversely, the adverse effects of inflation and corruption highlight critical challenges that undermine the potential benefits of foreign aid and investment. This study highlights the complex relationship between foreign aid, economic policies, and institutional frameworks. It emphasizes Nigeria's need to bolster governance and macroeconomic stability to optimize the developmental impacts of foreign aid. Through empirical analysis, this research contributes to the discourse on development economics, offering professional insights into the conditions under which foreign aid can effectively foster sustainable economic growth in Nigeria.
| Published in | International Journal of Business and Economics Research (Volume 13, Issue 4) |
| DOI | 10.11648/j.ijber.20241304.12 |
| Page(s) | 93-105 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Foreign Aid, Economic Development, Foreign Direct Investment, Nigeria
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APA Style
Ugwuoke, J. C. (2024). The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria. International Journal of Business and Economics Research, 13(4), 93-105. https://doi.org/10.11648/j.ijber.20241304.12
ACS Style
Ugwuoke, J. C. The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria. Int. J. Bus. Econ. Res. 2024, 13(4), 93-105. doi: 10.11648/j.ijber.20241304.12
AMA Style
Ugwuoke JC. The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria. Int J Bus Econ Res. 2024;13(4):93-105. doi: 10.11648/j.ijber.20241304.12
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Download@article{10.11648/j.ijber.20241304.12,
author = {Jude C. Ugwuoke},
title = {The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria
},
journal = {International Journal of Business and Economics Research},
volume = {13},
number = {4},
pages = {93-105},
doi = {10.11648/j.ijber.20241304.12},
url = {https://doi.org/10.11648/j.ijber.20241304.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20241304.12},
abstract = {This study examines the impacts of foreign direct investment (FDI) as a proxy for Foreign Aid, alongside other critical economic and political variables, on Nigeria's economic development. Utilizing an Ordinary Least Squares (OLS) regression model from 1981 to 2022, it explores the dynamics between FDI, trade openness, unemployment rate, corruption index, inflation rate, political stability, and population growth rate in shaping Nigeria's economic growth trajectory. The findings reveal that FDI significantly contributes to economic development, while trade openness highlights the importance of a conducive external economic environment. Conversely, the adverse effects of inflation and corruption highlight critical challenges that undermine the potential benefits of foreign aid and investment. This study highlights the complex relationship between foreign aid, economic policies, and institutional frameworks. It emphasizes Nigeria's need to bolster governance and macroeconomic stability to optimize the developmental impacts of foreign aid. Through empirical analysis, this research contributes to the discourse on development economics, offering professional insights into the conditions under which foreign aid can effectively foster sustainable economic growth in Nigeria.
},
year = {2024}
}
TY - JOUR T1 - The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria AU - Jude C. Ugwuoke Y1 - 2024/08/15 PY - 2024 N1 - https://doi.org/10.11648/j.ijber.20241304.12 DO - 10.11648/j.ijber.20241304.12 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 93 EP - 105 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20241304.12 AB - This study examines the impacts of foreign direct investment (FDI) as a proxy for Foreign Aid, alongside other critical economic and political variables, on Nigeria's economic development. Utilizing an Ordinary Least Squares (OLS) regression model from 1981 to 2022, it explores the dynamics between FDI, trade openness, unemployment rate, corruption index, inflation rate, political stability, and population growth rate in shaping Nigeria's economic growth trajectory. The findings reveal that FDI significantly contributes to economic development, while trade openness highlights the importance of a conducive external economic environment. Conversely, the adverse effects of inflation and corruption highlight critical challenges that undermine the potential benefits of foreign aid and investment. This study highlights the complex relationship between foreign aid, economic policies, and institutional frameworks. It emphasizes Nigeria's need to bolster governance and macroeconomic stability to optimize the developmental impacts of foreign aid. Through empirical analysis, this research contributes to the discourse on development economics, offering professional insights into the conditions under which foreign aid can effectively foster sustainable economic growth in Nigeria. VL - 13 IS - 4 ER -
Public Administration and Public Policy, Auburn University, Auburn Alabama, United States
