Bivariate Causality Analysis on the Impact of FDI Inflows and Economic Growth in Nigeria

covers economics, international finance, financial management and business management. She has made a modest contribution in the banking industry with her years of experience in the sector. She is an ICT enthusiast and is also grounded in the use of information and communication technology (ICT) in business, teaching and learning. The aim of this study is to find out the direction of causality between foreign direct investment (FDI) and economic growth (GDP) in Nigeria for a period of 40 years, which is between 1970 to 2009. The study employed in its analysis, the use of Ordinary Least Square (OLS), the unit root test was used to test for stationarity of the time series, the Johansen Cointegration test was used to test for the existence of long-run relationship among the variables and finally, Granger causality test, to establish the causal relationship between the variables. The stationarity test (unit root) was carried out in other to ascertain the order of integration among the variables. The variables foreign direct investment (FDI) and gross domestic product (GDP) were found to be nonstationary