Impact of Foreign and Domestic Investments on Economic Growth in Nigeria: An Application of ARDL App

For the years 1981 to 2018, this paper explores the relationship between economic development, domestic and foreign investments in Nigeria. In testing the long-and-short runs relationship, the properties of time series variables were investigated using the Augmented Dickey-Fuller technique and the Autoregressive Distributed Lag approach. The unit root results indicate that four of the model's variables were stationary at first difference, while one was stationary at level.The key model's findings showed that foreign investment has a positive long-term and short-term effect on economic growth, domestic investment has a negative long-term and short-term impact on economic growth, and trade openness has a positive long-term and short-term impact on economic growth in Nigeria. As a result, this paper recommends that the government, policymakers, and relevant authorities make a concerted effort to formulate policies aimed at creating a favourable investment environment so that Nigerians and non-Nigerian investors alike will be encouraged to invest in the country.To achieve meaningful economic development, policymakers should also take steps to ensure foreign exchange stability and increase trade openness.

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