European Journal of Accounting, Finance and Investment

International Capital Flow And Economic Development: The Case Of The Nigerian Economy

Omekwe Sunday

Niger Delta University, Bayelsa State, Nigeria

Omiekuma Paul

Niger Delta University, Bayelsa State, Nigeria

Keywords: Capital Flow, Development, Foreign Capital, International, Policy

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Abstract

Boosting per capital gross domestic product (GDP) remains central to Nigeria’s development goal and overall macroeconomic policy target. Thus, for an economy to developed, there is the need for increasing mobility of international capital. Based on this background, this paper used library science approach to examine international capital flow and economic development in Nigeria. Information’s for the study were gathered from secondary source and the findings revealed that inflow of capital in the forms of remittances and foreign direct investment have positive effect on economic development via increase in per capita GDP in the long run. Similarly technical cooperation grants as well as good economic and political conditions are positively linked to economic development. On the other hand, multilateral debt negatively affects economic development in both short and long run. Owing to the findings, is suggested that policy makers should initiate policies that are helpful for mobilizing international resources and allow for a paradigm shift that will ensure the allocation of the resources to key sectors with high potentials for development via growth of the t per capita GDP.