THE EFFECT OF CAPITAL FLIGHT AND FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY

THE EFFECT OF CAPITAL
FLIGHT AND FOREIGN DIRECT
INVESTMENT ON NIGERIAN
ECONOMY
Fineboy Ikechi Joseph and Jane Chinyere
Akujor
Department of Accounting, Faculty of
Social and Management Sciences, Clifford
University, Owerrinta, Ihie, Abia State.
fayooxyz2009@yahoo.com
&
Department of Financial Management
Technology, School of
Management Technology , Federal
University of Technology, Owerri,
Imo State. janeakujor@gmail.com
ABSTRACT
The study examines the effect of capital flight
and foreign direct investment on Nigerian
economy for the period of 20082019. The
data were analysed using Multiple Regression
in line with the research objectives. The
findings reveal that capital flight does have
significant effect on economic growth in
Nigeria.
Tax
It is equally revealed that foreign direct
investment does have a significant effect
on economic growth in Nigeria; a
confirmation
that
foreign
direct
investment in Nigeria has reduced
drastically as a result of political instability,
lack
of
transparency,
widespread
corruption
and
poor quality
of
infrastructure. Based on the findings, it
was concluded that increase in capital
flight and reduction in foreign direct
investment in Nigeria would continue to
impact the economy negatively. The study
therefore
recommended
that
the
government, politicians and the policy
makers should formulate policies to
attract foreign investors rather than
illicitly and extravagantly sending or
spending money overseas. Policies that
would encourage reception of new
technology and more job opportunities
and increased productivity into theBook of Abstract
economy should be encouraged. It is also
recommended that the domestic investors
should be considered while formulating
policies that could attract and motivate
existing and potential domestic investors
in Nigeria and also reduce illicit flow of
funds abroad as this in turn will enhance
the GDP of the nation.
Keywords: Foreign Direct Investment,
Capital Flight, Gross Domestic Product,
Multinational Corporations

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