Effect of Agricultural Foreign Direct Investment on Economic Growth in Nigeria 1981–2022

Abstract

This study investigates the effect of agricultural foreign direct investment (FDI) on economic growth proxy by agricultural GDP in Nigeria between 1981 and 2022. Through a review of the literature, the impacts of agricultural FDI on economic growth in Nigeria are identified. Economic data including agricultural gross domestic product (GDP), agricultural foreign direct investment, exchange rate and inflation rate are collected to determine the extent to which agricultural FDI has influenced economic growth in the country. Descriptive and econometric analyses are conducted to draw conclusions regarding the effects of agricultural FDI on economic growth in Nigeria. The results suggest that agricultural FDI in the have driven economic growth, with a positive and significant influence on GDP growth. Specifically, the results indicate that 1% increase in agricultural FDI is associated with a 0.051% increase in GDP growth. In conclusion, FDI in the agricultural sector has a substantial impact on economic growth in Nigeria and should be encouraged by policy makers in order to achieve higher GDP growth rates.