Foreign Direct Investment, Tourism and Economic Growth in Nigeria

Abstract

The research examined foreign direct investment, tourism and Nigeria’s economic growth. The yearly time series data from 1981 to 2023 was obtained from the 2023 bulletin of the Central Bank of Nigeria statistical bulletin. Gross Domestic Product was deployed as the explained variable while tourism revenue, foreign direct investment, inflation and gross capital formation were utilized as the explanatory variables. Auto Regressive Distributed Lag (ARDL) model was used for the regression analysis. The results showed that foreign direct investment and tourism had a favorable implication on the growth of the economy in the short run and long run. The researcher recommended that Nigeria should create a peaceful atmosphere that will attract investment in the tourism, inflation should be tackled and the authorities should accelerate the tourism sector revenue by purchasing, replacing and repairing more tourism facilities that will attract tourists.