Foreign Financial Inflows and Economic Growth in Nigeria: A Comprehensive Analysis

Abstract

Several policy measures were targeted and adapted by governments globally to achieve and rapidly increase sustainable economic growth. In view of that, economies acclimatize to both monetary and fiscal policies in order to improve economic performance. A country's economic growth is an element of intuitive impacts of changing worldwide and homegrown powers. Attracting foreign financial inflows is one major policy strategy that the government has used, particularly in developing and emerging economies, to accelerate economic growth. This concentrate hence notices the Effect of Unfamiliar Economic Inflows, dominatingly, the degree to which Foreign Direct Investment, Foreign Portfolio Investment, Foreign Public Debts and Foreign Personal Remittances broadly control financial growth in Nigeria from 2000- 2021. The review utilized the Autoregressive Distributed Lag (ARDL) model to assess the information acquired. Discoveries uncovered that Foreign Direct Investment inflow altogether influences economic growth in Nigeria, and there is no huge long run connection between Foreign Portfolio Investment and financial growth in Nigeria. Besides, it was found that long run negative relationship exists among Settlement and Outer Public Obligation and economic growth in Nigeria. Last but not least, the study suggests that economic managers devise measures that will make it easier to mobilize more domestic investment to lessen the uncertainty that may accompany foreign investment during periods of local or international economic crises. In a similar vein, when making decisions that have an impact on the expansion of the economy, policymakers must take into account the potential benefits as well as the potential dangers associated with remittances.