Foreign Direct Investment and Human Capital Development in a Developing African Economy A Study of the Nigerian Economy 1987 2018

The passion and scramble for foreign capital by developing and less developed economies to supplement their domestic resources cannot be overemphasized. The existing and growing mismatch between domestic capital stock of developing and less developed economies and their capital requirements for investment purposes has been adduced as the cause for this scramble. Various studies have attempted to explore the reasons for the appetite and hunger for foreign capital especially by developing and less developed countries with mixed findings. Foreign direct investment FDI is an aspect of international capital inflows and refers to investment that confers controlling ownership of a business in one country to a different entity in another country. For this study, FDI is proxied by Gross Fixed Capital Formation, exchange Rate, Interest Rate and Market Capitalisation The main objective of this study is to explore the effect of FDI on human capital development in Nigeria. The specific objectives are to explore, determine, assess, examine and ascertain the effect of foreign direct investment, gross fixed capital formation, exchange rate, interest rate and market capitalization respectively on human capital development in Nigeria. The study adopted ex post facto research design and sourced data from the Central Bank of Nigeria Statistical Bulletin and Annual Reports and the World Bank Development Indicators were analyzed using Descriptive Statistics, Augmented Dicker Fuller tests for unit roots and Autoregressive Distributive Lag ARDL for the hypothesis. The study found that foreign direct investment has no long run effect on human capital development Nigeria but rather has positive and significant short run effect on human capital development in Nigeria. It is recommended that government should reduce emphasis on foreign direct investment and rely on it strictly for short term plans as it does not have long run effect on human capital development in Nigeria. Mbanefo Patrick Amaechi "Foreign Direct Investment and Human Capital Development in a Developing African Economy: A Study of the Nigerian Economy 1987-2018" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2 , February 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49227.pdf Paper URL: https://www.ijtsrd.com/management/management-development/49227/foreign-direct-investment-and-human-capital-development-in-a-developing-african-economy-a-study-of-the-nigerian-economy-19872018/mbanefo-patrick-amaechi