Management Of Foreign Capital Inflows In Nigeria And Productivity
Halilu Uba
Department Of Business Administration, Price Abubakar Audu University Anyigba, Kogi State Nigeria.
Emmanuel Kalu Agbaeze
Department of Management, University of Nigeria, Enugu Campus, Enugu State.
Chukwu Benjamin Ibe
Department of Management, University of Nigeria, Enugu Campus, Enugu State
Keywords: Foreign Direct Investment, Nominal Gross Domestic Product, Foreign Portfolio Investment, Import, Foreign Exchange Rate
Abstract
This study focused on the management of foreign capital inflows into Nigeria and productivity. The study used an ex post facto research design. The variables of measurement include Foreign Direct Investment, Foreign Portfolio Investment, Import, Foreign Exchange Rate and Nominal Gross Domestic Product in Nigeria for the period of 1993 to 2020. Data for the study were collected from the Central Bank of Nigeria. The hypotheses were tested using Ordinary Least Square regression analysis while some diagnostic tests such as Shapiro Wilk normality, Pearson Correlation, Variance Inflator Factor, Heteroskedasticity Test were conducted. The study showed that foreign direct investment has a significant positive effect on nominal gross domestic product in Nigeria for the period under review while foreign exchange rate has a significant negative effect on nominal gross domestic product in Nigeria. The study further showed that both foreign portfolio investment and import have an insignificant positive effect on nominal gross domestic product in Nigeria. The study recommended among others that the federal government should provide an enabling business environment that would attract more expatriates’ in order to bring in the expertise needed to train and retrain domestic human capital.