A REASSESSMENT OF THE EFFECTIVENESS OF FOREIGN INVESTMENT AS A TOOL FOR REDUCING UNEMPLOYMENT IN NIGERIA

NNEBEDUM, MIRACLE O (2025) A REASSESSMENT OF THE EFFECTIVENESS OF FOREIGN INVESTMENT AS A TOOL FOR REDUCING UNEMPLOYMENT IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

The paper examined the influence of the foreign investment on unemployment in Nigeria, and followed the data from 1980 to 2023. It particularly determined the impact of foreign direct investment, gross domestic product, interest rate and inflation rate on unemployment through multiple regression model. The unit root test suggested the presence of non-stationary nature in the variables but a long-run equilibrium generated in the use of the cointegration test. Thus error correction role was estimated with the help of ordinary least squares method in the short run and the result showed that there was a significant negative correlation between foreign direct investment and there was a positive but insignificant effect on unemployment because of gross domestic product and inflation rate in the short run. The foreign direct investment continued to exhibit a robust negative and statistically significant relationship with unemployment in the long-rung, whereas gross domestic product and inflation-rate continued to exhibit a positive and statistically insignificant relationship. It was observed that interest rate positively and significantly influenced unemployment in the short-term and in the long-term. To enhance the role of foreign investment as an instrument of job creation, the report recommended the continuance of the investor-friendly regime, management of inflation, reduction of interest rates, enhancement of macroeconomic stability by undertaking those structural reforms and anti-corruption efforts that have immediate effects.

Item Type: Thesis (Other)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Management and Social Sciences
Depositing User: Uchenna Eneogwe
Date Deposited: 16 Jun 2026 08:57
Last Modified: 16 Jun 2026 08:57
URI: http://eprints.gouni.edu.ng/id/eprint/5819

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