Title:
THE IMPACT OF FOREIGN DIRECT INVESTMENT ON UNEMPLOYMENT RATE IN NIGERIA (1986-2018)

Authors:
Oloruntuyi, A.O, Nigeria

Abstract:

The study examined the impact of foreign direct investment on unemployment rate in Nigeria from 1986-2018. While, specific objective are to evaluate the impact of foreign direct investment on unemployment in Nigeria, appraised the relational effect of foreign direct investment on Nigeria economic growth, and determined the short and long run effect of foreign direct investment and the levels of unemployment in Nigeria. The study utilized secondary sources of data. The study employed autoregressive distributive lag (ARDL) method to establish the effect of explanatory variable on dependent variable. Other estimation techniques used includes; multivariate Granger causality test (VAR), Augmented dickey Fuller unit root test, error correction model (ECM) and stability test. Based on the finding, the study revealed EXCH, GRRGDP and FDI are stationary at level and UEM, INF,FDI at first difference. A long run relationship exit among uem, ggrgdp, fpi, exchr, infl and FDI. The study concluded that there exit a causal relationship between economic variables and unemployment rate in Nigeria. Therefore, the study recommends that government at various levels should improve on the several programs and policies that are ongoing to encourage the influx of foreign direct investment and appropriate stringent policy measures to reduce the level of insecurity thus, creating a safe environment for potential investors.