Foreign capital stimulation for economic development in Nigeria

Abstract

For the purpose of attaining sustainable or long term economic growth and development, investment, otherwise referred to as capital formation, is of significant importance. This position has been supported by eminent scholars whose works was sited in the literature review. However, low savings has always created lack of adequate funds for investment, which has always been the reason for the clamour for foreign capital, in an attempt to bridge the gap. Findings in this study reveals that foreign capital (as important as it seem) may not necessarily boost the growth of output. Regression result shows that it can in fact dampen it. On this basis, the study recommend the stimulation of foreign capital with caution. This would help in the realization of the growth and the developmental goals of the nation.